TO: Mayor and Commissioners
FROM: Henry Dachowitz, Chief Financial Officer
THROUGH: Terrence R. Moore, ICMA-CM
DATE: July 15, 2025
Title
APPROVAL OF RESOLUTION NO. 153-25 AUTHORIZING THE USE OF FOUR (4) FIRMS TO SERVE AS THE CITY'S INVESTMENT BANKING TEAM PROVIDING INVESTMENT BANKING SERVICES PURSUANT TO REQUEST FOR PROPOSAL 2025-034
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Recommended Action:
Recommendation
Motion to Approve Resolution No. 153-25 authorizing the use of four (4) firms for the City's Investment Banking Team providing Investment Banking Services pursuant to Request For Proposal 2025-034.
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Background:
The City of Delray Beach is undertaking the issuance of water and sewer revenue bonds to fund the construction of a new water treatment plant. In order to do so, the City required the procurement of an investment banking team to provide the following services: Review and comment on the bond documents, including the Preliminary Official Statement, the Final Official Statement and Bond Purchase Agreement, Assist in preparation and discussions with rating agencies and bond insurers, Make recommendations for important aspects of the proposed financing, including, but not limited to, the timing of the sale, the overall sales approach, the structure of the bonds, the call provisions, the use of credit enhancement and the pledge of System Development Charges (impact fees), Lead the underwriting team in marketing and distributing the bonds to both retail and institutional investors, in an attempt to access the largest possible selection of investors, Underwrite the financing based upon terms and conditions agreed to by both the City and the underwriters in the Bond Purchase Agreement, Provide detailed and specific information as it relates to the orders and allotments on the specific financing, Assist with the closing of the bonds, including reviewing and providing comments on closing documents and providing a post-financing report to the City which highlights the key characteristics of the financing.
In order to procure the investment banking team, the City undertook Request for Proposals No. 2025-034. The City received thirteen (13) proposals prior to the submittal deadline on April 17, 2025 from the following firms:
Alamo Capital
Bank of America
Blaylock Van LLC
Estrada Hinojosa
J.P. Morgan Securities LLC
Jefferies LLC
Morgan Stanley & Co. LLC
PNC Capital Markets
Raymond James & Associates
RBC Capital Markets
Siebert Williams Shank & Co
Stifel, Nicolaus & Company, inc
Wells Fargo
On June 16, 2025 the City’s selection committee meet to score and rank the proposals. The following was the final ranking.
1) Bank of America
2) Morgan Stanley
3) JP Morgan Securities and Wells Fargo (tie)
5) Raymond James & Associates
6) Siebert Williams Shank & Co
7) PNC Capital Markets and RBC Capital Markets (tie)
9) Jefferies and Stifel, Nicolaus & Company, Inc. (tie)
11) Estrada Hinojosa
12) Blaylock Van LLC
13) Alamo Capital
On June 24, 2025 the selection committee determined that interviews were not desired and determined that the top four (4) firms would serve as the City investment banking team with Bank of America operating as Senior Manager with the remaining three firms serving as Co-Managers. If the investment banking team is approved by the City Commission, a Bond Purchase Agreement will be prepared and approved as an exhibit to the Bond Resolution that will be brought to the City Commission for consideration.
This motion is in accordance with Code of Ordinances Section 36.02 Commission Approval Required.
Attachments:
1. Resolution No. 153-25
2. Legal Review
3. Bank of America Response to RFP
4. Morgan Stanley Response to RFP
5. J.P. Morgan Response to RFP
6. Wells Fargo Response to RFP
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
n/a)
Timing of Request:
Timely approval is requested to initiate this project.