Request for Proposals for Swap Advisory Services

Sacramento County is requesting proposals for swap advisory services for its outstanding interest rate swap agreements covering the 2008 Pension Obligation Bonds and 2007B Water Agency Revenue Bonds, both indexed to SOFR, with proposals due August 21, 2026 and questions due August 7, 2026.

The scope encompasses ongoing advisory support for existing swap agreements, monthly rate validation for POB swaps and quarterly rate validation for Water Agency swaps, counterparty diversification and exit strategies, credit risk management, bond insurer coordination, fairness opinions and certificates, counterparty negotiations, swap suitability analysis, transaction pricing and modeling, and documentation negotiation and closing assistance. A potential Phase 2 beginning July 1, 2027 would add swap valuation services with sensitivity analysis, valuation attestation letters on a semi-annual basis, and GASB 53 and GASB 72 compliance reporting for all outstanding swaps.

The County intends to award a four-year contract with an option to extend for an additional one year. Proposals are limited to ten pages excluding full resumes and the separate fee proposal document, which must include hourly rates for all proposed personnel and not-to-exceed amounts for one year of monthly rate validation services for POB swaps, quarterly rate validation for Water Agency swaps, and Phase 2 GASB reporting services.

Proposed lead advisors must have worked on at least two swap advisory contracts for municipal clients within the past five years. The County's existing financing team includes PFM Financial Advisors LLC as Municipal Advisor, Orrick as Bond Counsel, and Stradling Yocca Carlson & Rauth, P.C. as Disclosure Counsel. Required insurance includes Commercial General Liability of $2,000,000 per occurrence, Automobile Liability of $1,000,000 per accident, Workers' Compensation at statutory limits, and Professional Liability/Errors and Omissions of $2,000,000 per occurrence or claim.

Evaluation criteria address firm experience and ability to provide services, team qualifications and customer service capabilities, quality of service delivery approach and communication strategy, and fee competitiveness, with the lowest-cost proposal receiving maximum points. All proposals become public records.