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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Brian Reeves, Associate Chief Financial Officer |
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TITLE:
title
Contract: Master Task Ordering Agreement - Bond Underwriting Services Pool (Bank of America Securities)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute the Master Task Ordering Agreement (MOTA) pool for Bond Underwriting with Bank of America Securities with a not-to-exceed amount of $7,500,000 for the entire pool.
BACKGROUND:
As of December 31, 2024, UTA has approximately $2 billion in outstanding senior and subordinate sales tax revenue bonds. This bond underwriting engagement encompasses services related to the ongoing management of these bonds, potential refundings, and the issuance of new bonds as needed.
In accessing capital markets, bond underwriters play a critical role as intermediaries. They assist in preparing bond offering documents, developing investor marketing materials, and facilitating the issuance and distribution of UTA bonds to investors.
DISCUSSION:
UTA plans to utilize a pool of bond underwriters to develop diverse financing solutions. By maintaining a pool of underwriters, the Authority can access a broad range of financing strategies, enhancing financial flexibility and ensuring timely access to capital markets.
Under this arrangement, selected underwriters will join the MTOA contract pool, which leverages the collective strengths of its members. This structure provides UTA with access to specialized expertise and competitive advantages, including:
• Expertise in negotiated and competitive bond sales
• Capability to support various issuance sizes
• Flexibility to collaborate within the pool (e.g., senior and co-senior manager partnerships)
• In-depth market research and insights
• Access to skilled professionals with industry expertise
The MTOA contract pool offers a cost-effective approach for UTA to navigate complex capital markets while securing market-competitive financing solutions.
CONTRACT SUMMARY:
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Contractor Name: |
Bank of America Securities |
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Contract Number: |
25-039301 |
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Base Contract Effective Dates: |
Effective after last signature thru 3/31/2030 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$7,500,000 for entire pool. |
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Procurement Method: |
RFP |
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Budget Authority: |
Approved 2025 Capital Budget |
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ALTERNATIVES:
Pursue procurement through a different contract or solicitation. This would delay issuance of bonds substantially, and limit UTA’s financial flexibility.
FISCAL IMPACT:
The MTOA total not-to-exceed contract value is $7,500,000, which covers the entire pool and payment for services will come from bond issuance proceeds.
Budget and 5 Year Capital Plan:
• 2025 MTOA Pool Total: $1,500,000
• 2026 MTOA Pool Total: $1,500,000
• 2027 MTOA Pool Total: $1,500,000
• 2028 MTOA Pool Total: $1,500,000
• 2029 MTOA Pool Total: $1,500,000
5-year total: $7,500,000
ATTACHMENTS:
• Contract: Master Task Ordering Agreement - Bond Underwriting Services Pool (Bank of America Securities)