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COMMUNITY FACILITIES
DISTRICTS (CFDs)
RFP for CFD Underwriters Pool
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FINANCE COMMITTEE
CITY OF MENIFEE, CA
July 9, 2024
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BONDED COMMUNITY FACILITIES DISTRICTS (CFDs)
AUTHORIZED UNDER MELLO-ROOS ACT OF 1982 (“MELLO-ROOS ACT”) -1-
CC-20: SPECIAL
ASSESSMENT AND
COMMUNITY FACILITIES
DISTRICT AND POLICIES
(City Council Policy 4/15/20)
Adopted policy regarding
formation of community
facilities or special
assessment districts and
the issuance of bonds to
finance eligible public
facilities and/or public
services necessary to
serve newly developing
residential projects, and
may consider commercial
and/or industrial
projects.
CITY STAFF:
- City Executive Office
- Public Works/Engineering
(Land Development)
- Finance Department
FINANCE COMMITTEE
- Mayor Pro Tem Deines
- Councilmember Sobek
CONSULTING TEAM:
- Special Tax Consultant
(Spicer Consulting Group)
- Financial Advisor
(Urban Futures)
- Bond Counsel
(Stradling Yocca Carlson & Rauth)
- Underwriter
(CFD Underwriter Pool)
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ROLE OF THE UNDERWRITER
The Underwriter structures and markets the bond
issuance.
Underwriter Selection Components:
- Cost: for underwriting services, competitive relative to industry. - Experience & Strategy with CFD Municipal Bond Market: understanding of pre-marketing activity and best bond sale strategies.
- Familiarity with Community and Administrative Processes: Understanding of the specific projects (underwriting bond sale marketing) and administrative/legislative agenda items/documents/due diligence required to issue CFD bonds. -3-
REQUEST FOR PROPOSAL (RFP): CFD UNDERWRITER SERVICES
• RFP issued spring of 2024 for CFD Underwriter Services by Urban Futures (Financial Advisor) on behalf of City.
• 6 Firms with California specific CFD Underwriting Services were invited to submit proposals.
• 6 RFP responses were received:
• Hilltop Securities
• Oppenheimer
• Piper Sandler
• Ramirez & Co.
• Raymond James
• Stifel
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REQUEST FOR PROPOSAL (RFP): CFD UNDERWRITER SERVICES
Proposal Responses Evaluated by Finance Staff &
Urban Futures based on RFP Evaluation Criteria:
• Experience with CFD Bonds Issuances in CA
• Assigned Team
• Marketing Plan and Distribution Capabilities
• Previous Pricing Performance
• Knowledge and Analysis of City Specific Information
• Cost for Services
NEXT STEPS & UPCOMING BOND ISSUANCES
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Rotating CFD Underwriters Pool
• Top 3 Firms be used on rotating basis for CFD bond issuances:
• Stifel
• Raymond James
• Ramirez & Co.
• CFD 2022-1 (Quartz Ranch) and CFD 2023-1 (Rockport Ranch) • Quartz Ranch parity bonds issuance scheduled for August 2024, recommended underwriter: Stifel
• CFD 2023-1 (Rockport Ranch) bond issuance anticipated for end of 2024, recommended underwriter: Raymond James
• Next bond issuance following Quartz Ranch and Rockport Ranch, recommended underwriter: Ramirez & Co.
FINANCE COMMITTEE: RECOMMENDED ACTIONS
• Receive report on CFD Underwriters Pool and intended
selection for two upcoming bond issuances, and;
• Recommend using established CFD Underwriter’s Pool on rotating basis.
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Thank You
Questions?