Staff reviews Bank of America response to underwriting RFP for proposed bond refunding

District staff reviewed Bank of America’s response to the district’s request for proposals (RFP) for underwriting services at the Oct. 8 work session and said they will ask the board to ratify the recommended selection at next week’s regular meeting.

Staff described Bank of America as a “heavy hitter” in the market and noted the firm’s capacity to carry bonds if needed; presenters said the bank’s response was the strongest among five proposals. Staff recommended a negotiated underwriting approach given timing constraints and the district’s desire for market certainty.

Staff outlined a tentative timeline: secure a bond rating (Moody’s or S&P) in late October or November, finalize the financing package, and take the bonds to market around mid-December (staff said no later than Dec. 15 if possible). Staff said selecting a negotiated underwriter reduces the risk that the district would be left holding unsold bonds and could offset the potential yield benefit of a competitive sale.

Board members asked about meeting timing and votes required; staff said formal action to proceed with the recommended underwriter and to present the financing would occur at a regular meeting after bond ratings and before bonds are issued. Staff also noted public-notice requirements for the RFP and clarified that the outreach to underwriters was a standard procurement step for public entities.

No binding contract award was made at the work session; staff will seek ratification at the upcoming regular meeting and continue to refine the schedule.