RFP

Electronic copies of the proposal should be e-mailed and are due by 2:00 PM (CT) on December 1, 2025, to the attention of:

• Karlos Allen, PFM Financial Advisors LLC (allenka@pfm.com)
• Dan Kardish, PFM Financial Advisors LLC (kardishd@pfm.com)
• Rebecca Oblites, PFM Financial Advisors LLC (oblitesr@pfm.com)

Any questions concerning this RFQ should be directed via email to the PFM contacts listed above.

 It is the sole responsibility of the Proposer to assure that its proposal is received prior to the time specified. Any proposal received after the stated time and date may not be considered.

PROPOSAL REQUIREMENTS:

Firms are asked to submit the following information. Firms are requested to adhere to a total 5- page limit (minimum 10-point font). Requested team member resumes, deal lists, and case study may be included as appendices and will not count against the page limit.

1. Executive Summary/Cover Letter (one-page limit; not included in the total 5-page limit). Each response should include a cover letter signed by an officer of the firm, indicating that the response is valid for at least 90 days and that the officer is legally authorized to contractually bind the firm. The cover letter should also summarize the key points of the firm’s response.
2. Overview of your firm and Investment Banking Team. Provide a brief overview of your firm, including the specific individuals assigned to manage and execute a financing for this project. Describe the professional backgrounds of these individuals, particularly their experience with recent special assessment financings. Clearly indicate each individual's responsibilities during the financing and highlight the day-to-day contact person as well as the individual who will attend official meetings of the City, if requested.
3. Capital Position. Discuss the firm’s capital position, including total capital, equity capital, net capital and excess net capital for the past five years.
4. Experience. Provide a list of the issues and par amount of non-rated and rated/insured Texas PID bonds for which your firm, and the individuals assigned, have served as either senior or sole managing underwriter detailed by year for each of the past three years overall. Please include a summary in the proposal and details in an appendix.
5. Economic Development/Land Secured Underwriting Experience. Discuss your firm's experience in underwriting special assessment bonds. Provide a list of special assessment revenue financings for which your firm served as senior managing underwriter within the past three years. Provide subtotals (including both taxable and tax-exempt transactions) for your experience with such debt issued (1) nationally and (2) in Texas. Please also include two case studies (attach as appendices; not counted in page limit) describing relevant, comparable experience, with a particular focus on examples of similar type including complete details regarding the bond security and structure, final pricing, coupons, yields, comparisons to relevant market indices and underwriting compensation.
6. References. Please provide three (3) local government special assessment financing references where you served as senior underwriter, including name, title, telephone number, email address, type of project, and the date(s) of service.
7. General Approach. Explain the issues involved in your strategy and processes to interact with City staff, City’s consultants, developer and developer’s consultants. Explain your credit considerations that result in a successful financing. Explain your firm’s process to determine investor suitability requirements, process and procedures to ensure suitability compliance, and marketing strategy.
8. Discussion of Structuring Issues. Provide a general discussion of the recommended approach to structuring PID bonds. Detail the issues involved and your strategy for bond structure and to balance the developer’s goal of maximizing the project versus credit quality and issuer / investor risk. Include a discussion and analysis of potential couponing structures, financing considerations, including investor preferences, credit and credit enhancement considerations, and any risks that the City should be aware of in implementing the recommended approach. In addition, please include thoughts regarding the need for debt service reserves or other reserves.
9. Marketing. Detail your Texas PID pricings by credit spreads and average yields. Provide a copy of example pricing reports, if any, your firm would provide for the City’s proposed PID bond issue, and example report indicating orders, final sales and investors. Discuss your firm’s distribution and general marketing strategy with respect to non-rated and rated/insured special assessment revenue bonds. Who will likely buy the securities? What specific investors will your firm target? What type of investor marketing strategy would your firm recommend?
10. Fees and Pricing. Please provide your indicative fees and expenses for PID financings. Assuming market conditions as of November 24, 2025, a hypothetical $20,000,000 bond transaction with a 30-year amortization, please list your firm’s estimated takedowns and other estimated transaction expenses or fees.
11. Underwriter’s Counsel. Please provide the names of two (2) underwriter counsel firms (and the specific attorneys at each firm) with whom your firm would be willing to work.
12. Conflicts of Interest. Discuss any relationships that could present a conflict of interest if your firm is selected.
13. Investigations. Explain in detail any recent disciplinary actions taken, investigations currently being conducted, or lawsuits filed against the firm and / or the primary representative for the is underwriting engagement during the last five years by federal, state, industry regulatory bodies, or clients including the Municipal Securities Rule Making Board (MSRB), the Financial Industry Regulatory Authority (FINRA), and the Securities Exchange Commission related to assessment revenue or other development-type financings.
14. Other Qualifying Information. Discuss any other information that you feel makes your firm uniquely qualified to serve as Underwriter for the City’s PID Bonds.

METHODOLOGY FOR ANALYZING PROPOSALS:

The City intends to evaluate proposals and make award(s) based on firms’ proposals deemed to be the most advantageous to the City. Criteria for the selection will focus on the following evaluation factors:

1. Underwriter’s Qualifications & Demonstrated Applicable PID Experience – The
   ability of the respondent to meet the terms of the RFQ, including expertise to perform the services required, quality of performance and professional qualifications of key personnel, experience within the past three years on similar financings, and reputation, ethical standards, and/or disciplinary history.
2. Soundness of Approach – Demonstrated ability to respond to the questions asked by the City in this RFQ and, in particular, the identification of potential challenges, risks, and project steps that should be considered with respect to PID financings, and offering solutions to those challenges, risks, and project steps.
3. References – Strength of references provided.

CONDITIONS AND LIMITATIONS:

1. The City reserves the right to reject any and all proposals and to request clarification of information from any Proposer.
2. The City will not accept joint responses to this RFQ.
3. The City may waive minor irregularities at its discretion.
4. All proposals received in response to this RFQ become the property of the City.
5. The City will not reimburse Proposers for any costs associated with the preparation and submittal of any proposal, or for any travel costs that are incurred.
6. This RFQ and the related responses of the selected Proposer may, by reference, become part of the formal agreement between the selected Proposer and the City.
7. Compensation: All fees shall be contingent upon completion of any financing.