Broomfield - Request for Quote Enterprise Fund Bond Issuance.pdf

CITY AND COUNTY OF BROOMFIELD REQUEST FOR

UNDERWRITING DOCUMENTED QUOTES

(Enterprise Fund – Revenue Bonds, Series 2026)

JUNE 6, 2025

Overview

The City and County of Broomfield (“Broomfield” or the “City”), is seeking proposals from qualified prospective underwriters regarding the anticipated issuance of two Enterprise Revenue Bonds, Series 2026 (the “2026 Bonds”). Water Revenue Bond, Series 2026 (Water Tank Project), will be for two new water tanks for approximately $70,000,000. The Wastewater Revenue Bond, Series 2026 (Wastewater Treatment Facility Expansion) will be for Phase 2 of Broomfield’s Wastewater Treatment Facility Expansion for approximately $115,000,000. Tax-exempt proceeds of the 2026 Bonds will be used to fund projects.

The Water Tank project is required because Broomfield needs the ability to store additional water, specifically in the areas north of West 144th Avenue. If development continues without the necessary water infrastructure, there will be inadequate storage and supply for fire flows. Regular, peak-hour usage will result in inadequate water supply and pressures to the higher elevation properties.

The Wastewater Treatment Facility Expansion (“WWTF”) project is necessary due to future increases in population and regulatory requirements from the Colorado Department of Public Health and Environment (“CDPHE”). The WWTF will need to commence a significant expansion to adequately treat the increase of wastewater and maintain compliance with current and future regulatory requirements.

Broomfield expects the 2026 Bonds to be issued as special, limited obligations of the water and wastewater enterprises. Both issuances will be done via a negotiated method of sale at fixed rates.

Professionals

The law firm of Butler Snow, LLP has been retained by Broomfield as Bond Counsel for this transaction, and in such capacity will also assist in the preparation of all documents required for the bond issuances. Butler Snow, LLP will render an opinion in customary form with respect to the validity of the tax-exempt treatment of the interest portion of the debt service due on the 2026 bonds. RBC Capital Markets, LLC is serving as Broomfield’s Financial Advisor.

Submission of Proposals

Broomfield is seeking an underwriter with specific experience with enterprise revenue bonds in Colorado. Broomfield will take into consideration the firm’s specific experience with similar

25-RFQ-FIN-BOND2

transactions, the relevant experience with the City & County of Broomfield and experience of the public finance and underwriting professionals. Broomfield expects to select the firm which it believes will best meet its overall expectations & timeline for the proposed financings. The issues are expected to close in January 2026.

Please submit your proposal including quote for fees, response to the required items, including a cover letter and sample engagement letter through the BidNet at www.bidnetdirect.com. Additional or expanded information may be attached as appendices to the documented quote. Please submit your information through BidNet no later than June 30, 2025 by 3:00 pm.

Proposing firms are requested to have no contact with Broomfield officials during this process. Any information requests, questions about the selection process or questions about the financing should be submitted through the BidNet system. Further information regarding the system or process may be submitted to solicitations@broomfield.org.

Broomfield reserves the right to reject all proposals and to negotiate with any prospective firms. If the 2026 general obligation bond issuance transaction fails to close for any reason, the proposing firms will have no recourse against Broomfield, its financial advisor, bond or special counsel, or any of their affiliates, agents or representatives for any expenses, losses, damages or liability incurred. Broomfield shall have the opportunity to clarify the contents of the sample engagement letter and add any additional terms that are necessary for a local government entering into this type of engagement. Any terms in the engagement letter that are not acceptable to the City may be rejected and the parties shall negotiate in good faith the terms of the final engagement letter which shall be executed by the winning proposer.

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REQUIRED RESPONSE ITEMS

1. Please provide an overview of your firm’s underwriting experience both nationally and in Colorado. Please provide specific enterprise fund revenue bond issues since January 2022.

2. Please identify the public finance personnel assigned to this transaction and provide brief descriptions of their relevant experience with comparable Colorado transactions.

3. Please provide your recommendations for securing a credit rating for the Series 2026 Bonds. Broomfield recently was reviewed by Moody’s and received an affirmation of their Aa2 rating for the Water Enterprise and an upgraded rating from Aa3 to Aa2 for the Wastewater Enterprise. Broomfield only has Series 2012 bonds outstanding for the water enterprise fund. Please also discuss your recommendations for any credit features for the 2026 Bonds.

4. Please provide your proposed fee structure for the 2026 Bonds. In addition, please indicate whether you anticipate retaining underwriter’s counsel, and, if so, the firm you would propose to serve in that role and related costs.

5. Please submit any additional information which you believe would be useful to

Broomfield in evaluating your qualifications to serve as underwriter.

Submission of Proposals