Sacramento_County_Swap_Advisory_Services_RFP.pdf

REQUEST FOR PROPOSALS

FOR

SWAP ADVISORY SERVICES

SACRAMENTO COUNTY

RFP PUBLISH DATE: July 27, 2026 DEADLINE FOR QUESTIONS: August 7, 2026, 4PM PST

RESPONSE DEADLINE: August 21, 2026, 4PM PST

RESPONSES MUST BE SUBMITTED ELECTRONICALLY TO:

https://secure.procurenow.com/portal/saccounty https://secure.procurenow.com/portal/saccounty

Request for Proposals – Swap Advisory Services | Page 1

SACRAMENTO COUNTY

REQUEST FOR PROPOSALS FOR

SWAP ADVISORY SERVICES

I. INTRODUCTION

Sacramento County (the “County”) is seeking proposals from swap advisory firms to provide swap advisory services for the County’s outstanding swap agreements for the 2008 Pension Obligation Bonds (POBs) and the 2007B Water Agency Revenue Bonds all of which are indexed to the Secured Overnight Financing Rate (SOFR). The County’s financing team is currently comprised of PFM Financial Advisors LLC (“PFM”) as Municipal Advisor, Orrick as Bond Counsel, and Stradling Yocca Carlson & Rauth, P.C.

as Disclosure Counsel. The County is intending to award a contract for a four-year term, with an option to extend the contract for an additional one year.

Background on Sacramento County Sacramento County encompasses approximately 994-square miles in the middle of the 400-mile long Central Valley, California's prime agricultural region. The County extends from the low delta lands between the Sacramento and San Joaquin rivers north to about ten miles beyond the State Capitol and east to the foothills of the Sierra Nevada Mountains. The southernmost portion of Sacramento County has direct access to the San Francisco Bay.

Services Description The County is looking to have advisory services for any ongoing needs related to the County’s existing swap agreements, rate validation services, and advisory services as it relates to analysis around any potential future variable rate/swap agreements. The County is also considering including swap valuation services and GASB 53 and GASB 72 compliance reporting services for the County’s interest rate swaps as a potential second phase of any resulting contract.

Schedule Please refer to the OpenGov Procurement project page for information on timelines. These dates are subject to revision or cancellation by the County in its sole and absolute discretion

Proposers must be received by the submission deadline in OpenGov Procurement. The County reserves the right to hold interviews as needed after proposals are received.

Questions concerning this RFP must be submitted to this solicitation’s Question & Answer page in OpenGov Procurement. Questions received via phone or e-mail to direct points of contact for this RFP will not be considered nor responded to. The County shall respond to questions properly submitted as described above via addenda if the answer presents a material change to the solicitation. The Question & Answer section in OpenGov Procurement may be used for non-material answers.

By submitting a proposal, proposer affirms review of all solicitation documents including all questions submitted and answers issued by the County on this project. FAILURE TO ADHERE TO

THIS REQUIREMENT MAY RESULT IN DISQUALIFICATION.

II. SCOPE OF SERVICES

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The selected firm shall provide services related to swap advising, which may include, but not be limited to, the following:

1. Assist with the development of the County’s swap counterparty diversification strategies, swap exit/unwind strategies, and credit risk management strategies.

2. Provide continual monitoring and tracking of the swap market and provide updates to the County as fluctuations occur.

3. Provide rate validation services for the County’s Pension Obligation swaps on a monthly basis.

4. Provide rate validation services for the county’s Water Agency swaps on a quarterly basis.

5. Work with any bond insurers to provide additional insurance on any swap obligations or termination of bond insurance in relations to unwinding of swap obligations.

6. Prepare and deliver “Certificate of Swap Advisor” of “Fairness Opinion” to be relied on by the

County relating to certain representations contained in the Tax Certificate executed by the County with the issuance of any related bonds, and/or as a tool to ensure fair swap pricing and as a permanent record that fair pricing was obtained.

7. Assist the County in negotiations or mediation with any current or former swap counterparty.

8. Review swaps, derivatives and similar financial products under consideration for suitability, financial benefit, and risk level.

9. Draw upon technical and financial data sources to model and price all potential swap transactions using various indices, including pricing for the procurement of new swaps through negotiation or competition, or for determining the price for swap amendments or terminations.

10. Assist in negotiation of swap documentation and pricing.

11. Assist with the closing of any swap transactions (including modifications and terminations) and all closing-related matters.

PHASE 2: POTENTIAL SCOPE OF WORK TO BEGIN JULY 1, 2027

1. Provide sensitivity analysis with curve shock of minus 25 and plus 25 basis points for each interest rate swap beginning with a valuation date of June 30th of each year, and December 31st of each year.

2. Provide a valuation attestation letter on a semi-annual basis.

3. GASB 53:

a. Provide a GASB 53-compliant evaluation of the effectiveness of each interest rate swap as of June 30th for each year.

b. Provide a GASB 53 report of effectiveness as of June 30th of each year on an annual basis.

4. GASB 72:

a. Provide a GASB 72-compliant fair value for each interest rate swap as of June 30th of each year on an annual basis.

b. Provide a GASB 72 fair value report as of June 30th of each year on an annual basis.

III. PROPOSAL REQUIREMENTS

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Firms interested in providing the swap advisory services described in Section II. above must submit a proposal addressing Sections A-F below, and must provide responses in the order listed below. Please do not use a font size smaller than 11. The proposal is limited to no more than ten (10) pages, including the Transmittal Letter. Unresponsive and/or incomplete responses may cause your proposal to be rejected.

A. Transmittal Letter

Please provide a transmittal letter addressed to Mr. Colin Bettis, County Debt Officer, and signed by an officer responsible for the engagement. The transmittal letter, which shall not exceed one page in length, shall provide an executive summary of your response. The transmittal letter should also include how your firm meets the minimum qualifications of this RFP. Any firm that does not demonstrate that the proposer meets the minimum qualifications by the deadline for submitting proposals will be considered non-responsive and may not be considered for contract award.

B. Firm Experience

1. Describe in general the services your firm provides, including a description of your firms’ corporate structure.

2. Provide your firm’s experience serving as a swap advisor for municipal clients, including length of time service such clients.

C. Team Qualifications

1. Identify the staffing structure and lead individual(s) who will be responsible for providing the services described in this RFP. Full resumes of the lead(s) may be included as appendices to the proposal and will not count toward the page limit.

2. Describe the background and expertise for the proposed leads, including a summary of the municipal clients served by the lead(s).

3. Provide the names, addresses, telephone numbers, and e-mail addresses of three municipal clients for whom you have provided swap advisory.

4. Discuss your team’s ability to be accessible and provide good customer service to the County as it relates to the scope of services requested in this RFP, including availability for addressing ad-hoc questions, scheduling meetings, etc.

D. Approach to Services

1. Describe your firm’s approach to providing swap advisory services, including how your firm would communicate and collaborate with the County and its team of finance contractors.

2. Describe your firm’s approach to conducting analysis for informing diversification, swap exit, credit risk management, and other strategies. Include a discussion on how your firm meets reporting requirements and the data elements to be included.

E. Fee Proposal (Please provide fee detail as a separate PDF document titled “Fee Proposal”)

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Provide a fee proposal that includes the following information:

1. Hourly rates for all lead individuals and staff involved in the provision of services.

2. Scenario for the purposes of comparing costs across all proposing firms: Provide a not-to-exceed amount for services for a one-year time period to provide monthly rate validation services for the Series 2008 POB swap agreement, and a separate line item for providing quarterly rate validation services for the Water Agency swaps. Include all costs associated with analysis and any transactions fees.

3. Provide a not-to-exceed amount for services for a one-year time period for providing the

GASB 53, GASB 72 reports for all outstanding swaps held by the County.

F. Regulatory Information and Conflict of Interest

Provide responses to the following questions. Responses to this section will not count toward the 10-page limit:

1. Describe any actual or potential conflicts of interest with the County, or any arrangements or relationships, formal or informal, that the firm and any of the staff assigned to work on these services has with any party that might interfere with the proposer’s ability to provide independent and objective advice and recommendations to the County in performing swap advisory services.

2. Within the past 24 months, has your firm and/or any of its principals been the subject of any investigation relating to the municipal securities industry by the SEC, NASD, NYSE, or any other State or Federal organization that oversees, regulates, licenses or is otherwise responsible for the municipal securities industry?

3. Within the past 24 months, has your firm and/or any of its principals been involved in any litigation, arbitration, disciplinary or other actions arising from the firm’s underwriting, management or handling of municipal securities?

4. Does there exist any relationship between your firm and any other non-affiliated firm(s) or individuals involving any compensation arrangement that may be associated with your possible engagement to assist with the County’s swaps?

IV. SUBMITTAL REQUIREMENTS

Proposers must submit their proposal to the County on or before the response deadline of August 21, 4:00 PM PST. Written proposals must be submitted via OpenGov Procurement via the solicitation link.

FAILURE TO COMPLY WITH ANY OF THE REQUIREMENTS OF THIS RFP, INCLUDING FAILURE

OF A PROPOSAL IN RESPONSE TO THIS RFP TO BE RECEIVED BY THE DEADLINE NOTED

ABOVE, OR FAILURE TO MEET THE MINIMUM QUALIFICATIONS IN THIS RFP MAY RESULT IN

REJECTION OF THE PROPOSAL.

V. EVALUATION CRITERIA

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A. Minimum Qualification:

1. Proposed lead(s) must have worked on at least two (2) swap advisory contracts for municipal clients within the last five (5) years.

B. Evaluation Criteria

The County intends to evaluate the written proposals based on evaluation criteria including the following, which are not necessarily listed in order of importance:

A. Firm Experience

1. Ability of the firm to provide the services requested in this RFP.

2. Relevance of experience and expertise of the firm to providing swap advisor services

B. Team Qualifications

1. Strength of qualifications and relevance of background and expertise of lead personnel assigned to serving as the lead(s) swap advisor(s).

2. Ability of team to provide good customer service, including availability for questions and meetings.

C. Approach to Services

1. Quality of firm’s approach to providing swap advisory and rate validation services, including its communication strategy with the County and its other contractors.

2. Ability of the firm to provide services under Phase 2 as it relates to swap valuation work, GASB 53 and GASB 72 reporting.

3. Demonstrated ability to problem solve, formulate plans, and communicate strategies and data to the County through direct contact and reports.

D. Fee Proposal

The firm submitting the lowest cost Fee Proposal will receive the maximum points available. The remaining firms will receive points in the following manner: Fee Proposal cost divided by lowest firm Fee Proposal cost, multiplied by the maximum points available. Hourly rates will not be scored for the purposes of this RFP.

VI. LIMITATIONS

This RFP does not commit the County to award a contract, or to defray any costs incurred in the preparation of a Proposal pursuant to this RFP.

All Proposals submitted in response to this RFP become the property of the County and public records, and as such may be subject to public review.

The County reserves the right to cancel or revise, in part or in its entirety, this RFP including but not limited to: selection schedule, submittal date, and submittal requirements. If the County cancels or revises the RFP, all RFP holders of record will be notified in writing. The County also reserves the right to reject any proposals that do not meet the minimum qualifications, and/or does not conform to the submission requirements outlined in this RFP.

The County reserves the right to request additional information and/or clarifications from any or all responders to this RFP.

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VI. RFP TIMELINE

RFP Issued July 27, 2026 Deadline for Questions August 8, 2026, 4 PM PST Proposals Due August 21, 2026, 4 PM PST

*Subject to change

VII. APPENDICES

1. Appendix 1 - Insurance Requirements

2. Appendix 2 – Swap Confirms

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APPENDIX 1

INSURANCE REQUIREMENTS

EXHIBIT B to Agreement between the COUNTY OF SACRAMENTO hereinafter referred to as "COUNTY," and ___________________________ hereinafter referred to as "CONTRACTOR"

INSURANCE REQUIREMENTS

1. INSURANCE

Without limiting CONTRACTOR’s indemnification, CONTRACTOR shall procure and maintain for the duration of the Agreement, insurance against claims for injury to persons or damage to property which may arise from or is in connection with the performance of the work hereunder and the results of that work by the CONTRACTOR, its employees, agents, representatives, subcontractors, or any other party for which CONTRACTOR is legally liable.

The County Risk Manager may approve self-insurance programs in lieu of required policies of insurance if, in the opinion of the Risk Manager, the interests of COUNTY and the public are adequately protected.

2. MINIMUM SCOPE OF INSURANCE

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 05 09 or 25 04 05 09) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if CONTRACTOR has no owned autos, covering hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

Personal Lines automobile insurance shall apply if vehicles are individually owned with limits of no less than $250,000 per person, $500,000 each accident, $100,000 property damage.

3. Workers’ Compensation: Insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Professional Liability (Errors and Omissions): Insurance appropriate to the CONTRACTOR’s profession, with limit no less than $2,000,000 per occurrence or claim and $2,000,000 aggregate covering CONTRACTOR’s wrongful acts, errors and omissions. Any aggregate limit for professional liability must be separate and in addition to any CGL aggregate limit.

5. Professional Errors & Omissions Liability, or on a stand-alone basis. Minimum limits shall not be less than $250,000 per person or per occurrence and $1,000,000 aggregate.

If the CONTRACTOR maintains broader coverage and/or higher limits than the minimums shown above, the COUNTY requires and shall be entitled to the broader coverage and/or the higher limits maintained by the

CONTRACTOR.

III. INSURANCE PROVISIONS

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The insurance policies are to contain, or be endorsed to contain, as applicable, the following provisions:

1. Additional Insured Status: The COUNTY, its Board of Supervisors, and all COUNTY officers, officials, employees, volunteers, and agents (“Additional Insureds”) are to be covered as additional insureds on the general and auto liability policies with respect to liability arising out of work or operations performed by or on behalf of the CONTRACTOR including materials, parts, equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement on the CONTRACTOR’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

2. Primary Coverage: For any claims related to this Agreement, the CONTRACTOR’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the Additional Insureds. Any insurance or self-insurance maintained by the Additional Insureds shall be excess of the CONTRACTOR’s insurance and shall not contribute with it. This also applies to any CONTRACTOR Excess or Umbrella liability policies.

3. Umbrella or Excess Policy: The CONTRACTOR may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable if the Primary and Umbrella or Excess Policies provide all the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the CONTRACTOR’s primary and excess liability policies are exhausted.

4. Notice of Cancellation: Each insurance policy required above shall provide that coverage shall not be canceled without notice to the COUNTY.

5. Waiver of Subrogation: CONTRACTOR hereby grants to COUNTY a waiver of any right to subrogation which any insurer of CONTRACTOR may acquire against the COUNTY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the COUNTY has received a waiver of subrogation endorsement from the insurer.

6. Self-Insured Retentions: Self-insured retentions (“SIR”s) must be declared to and approved by the

COUNTY in writing. The COUNTY may require the CONTRACTOR to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the SIR may be satisfied by either the named insured or COUNTY. Any and all deductibles and SIRs shall be the sole responsibility of CONTRACTOR or subcontractor who procured such insurance and shall not apply to the Additional Insureds. The COUNTY may deduct from any amounts otherwise due CONTRACTOR to fund the SIR/deductible. Policies shall not contain any SIR provision that limits the satisfaction of the SIR to the CONTRACTOR. The policy must also provide that defense costs, including the allocated loss adjustment expenses, will satisfy the SIR or deductible. The COUNTY reserves the right to obtain a copy of any policies and endorsements for verification.

7. Acceptability of Insurers: Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A-VII. Lower rated, or approved but not admitted insurers, or any other requirement changes (such as limits) are subject to the prior approval of the County Risk Manager.

8. Claims Made Policies: If any of the required policies provide claims-made coverage (1) the Retroactive

Date must be shown and must be before the date of the contract or the beginning of contract work, (2) insurance must be maintained, and evidence of insurance must be provided for at least three (3) years after completion of the contract of work, and (3) if coverage is canceled or non-renewed and not

Request for Proposals – Swap Advisory Services | Page 9 replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the CONTRACTOR must purchase “extended reporting” coverage for a minimum of three (3) years after completion of work.

9. Verification of Coverage: CONTRACTOR shall furnish the COUNTY with original certificates and amendatory endorsements, or copies of the applicable policy language affecting coverage required by this Exhibit. All certificates and endorsements and copies of the Declarations and Endorsements pages are to be received and approved by the COUNTY before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONTRACTOR’s obligation to provide them. The COUNTY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Any failure, actual or alleged, on the part of the COUNTY to monitor or enforce compliance with any of the insurance requirements is not deemed a waiver of any rights on the part of the COUNTY.

10. Severability of Interest: The CONTRACTOR 's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

11. Subcontractors: If CONTRACTOR uses subcontractors or others to perform work under this Agreement, such subcontractors or other persons shall be Named Insured or Additional Insured to the CONTRACTOR’s required insurance coverage or required by the CONTRACTOR to comply with equivalent insurance and conditions of this section.

12. Maintenance Of Insurance Coverage: CONTRACTOR shall provide COUNTY with evidence of each policy's renewal ten (10) days in advance of its anniversary date. CONTRACTOR is required by this Agreement to immediately notify COUNTY if they receive a communication from their insurance carrier or agent that any required insurance is to be canceled, non-renewed, reduced in scope or limits or otherwise materially changed. CONTRACTOR shall provide evidence that such insurance has been replaced, or its cancellation notice is withdrawn, without any interruption in coverage, scope or limits. No cancellation provisions in the insurance policy shall be construed in derogation of the continuing duty of CONTRACTOR to furnish insurance during the term of this Agreement. Failure to maintain required insurance in force shall be considered a material breach of the Agreement.

13. Special Risks or Circumstances: COUNTY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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APPENDIX 2 SWAP CONFIRMS