Item 23 - Pension Debt Refinancing Update and Underwriter Selection

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RAMIRE2 z ¢ z Ln LL O i' Provide an estimate of your total, not to exceed, underwriting costs associated with serving as senior manager to the City on a not -to -exceed approximately $671 million issue of fixed rate POBs. Please note that any payment to the underwriter is contingent on the closing of the bonds. Proposed Underwriter Fee. $1.75/bond for all maturities plus standard underwriting expenses. We note that a low underwriting fee does not always result in the best deal or lowest borrowing cost. An example of low underwriting fee bids with negative impacts: two recent POBs priced with a make -whole -call option will have negative lasting impacts on the two cities and indicative of how fee is not the most important component when selecting an underwriter. We can negotiate our fee, if it does not meet the City's expectations. Proposed Underwriter's Counsel: Kutak Rock - Albert Reyes; Jones Hall —Juan Galvan; Norton Rose Fulbright - Russell C. Trice Proposed Underwriter $/Bond Fee Total Underwriters' Discount Takedown $1.750 $1,174,250.00 Management Fee $0.000 $0.00 Expenses $0.178 $119,304.47 Total Discount $1.928 $1,293,554.47 Estimated Expenses UW Counsel $0.037 $25,000.00 CDC Review $0.003 $1,800.00 IPREO $0.068 $45,295.05 IPREOGameday $0.033 $21,916.54 CDIAC $0.007 $5,000.00 DTC $0.001 $800.00 CUSIP $0.001 $854.00 Day Loan $0.028 $18,638.89 Total Expenses $0.178 $119,304.47 Par Amount $671,000,000 The following forms, included in this RFP, shall be signed and included as part of the proposal submittal package: Attachment A: References; Attachment B: Proposers Statement; Attachment C: Non -Collusion Affidavit; Attachment D: Non - Lobbying Certification; Attachment E: Non -Discrimination Certification Please find the requested attachments (A — E) in Appendix A of our RFP response. Contractor shall provide three (3) references from public agency customers for which actuarial work similar to services specified [in.this RFP have been performed, including contact names and telephone numbers, and types of services yourfirm has provided. e Attachment A — References. The respondent grants permission for the City to contact any individuals listed as references. Please find the requested references in Attachment A in Appendix A of our RFP response. F oposer may be requested to submit its most recent auditedfinancial statement, evidencing Proposer's financial capacity tofully erform the required services, including provision of equipment and personnel expenses over a ninety (90) day period. Among Highest Capitalized Privately -Owned Firms in the Municipal Bond Industry. Ramirez & Co. operates as a privately -held corporation and has grown its capital organically (from its profitability) over 50 years. Nearly all of the Firm's capital is dedicated toward municipal underwriting and is routinely deployed to support our municipal clients in the primary and secondary markets. As of September 30, 2020, Ramirez & Co.'s capital is sufficient to sole manage a $3.15 billion single municipal transaction, assuming a 7% regulatory haircut. We are happy to provide our most recent Focus report upon request. The selected Proposer shall provide the required evidence of insurance coverage as set forth in the standard agreement within ten (10) business days after receipt of Notice of Intent to Award. Contractor must maintain, for the duration of its contract, insurance coverages as required by the City. Ramirez & Co. understands the contract is contingent on complying the required evidence of insurance coverage and provide evidence within the 10 business days after the receipt of Notice of Intent to Award. 15