Underwriting Services

City of Elk Grove
Request for Underwriting Proposals
Page 2
BACKGROUND
The City is seeking to establish a pool of underwriters to support its capital financing program on
an as-needed basis. The City's financing needs may include new money issuances and refinancings
across multiple debt types. Selection to the underwriter pool does not guarantee participation in
any such financing.
As an immediate pending financing, the City, through the Elk Grove Finance Authority (the
"Authority"), anticipates issuing Special Tax Revenue Bonds (the "Laguna Ridge Bonds") this
Summer to assist in financing certain improvements for Community Facilities District No. 2005-1
(Laguna Ridge) (the "District") and to refund outstanding Series 2016 (Outstanding Par of
$100,855,000) and Series 2018 Bonds (Outstanding Par of $18,405,000) callable at par on
September 1, 2026. The Series 2016 Bonds has a Reserve Fund cash balance of $8,108,683 and
the 2018 Bonds has a Reserve Fund cash balance of $1,674,103. The City anticipates that the new
money and refunding of the Laguna Ridge Bonds will be done as one transaction.
The District was formed in 2005 and now is substantially built out. As of May 1, 2025, property in
the District subject to the Special Tax securing the Bonds consists of approximately 5,767 taxable
parcels, the vast majority of which have been developed over the past 20 years into single family
homes.
The Bonds are special obligations of the Authority, payable from and secured by Revenues of the
Authority consisting primarily of payments received by the Authority from the City in connection
with the Bonds. The Bonds will be secured on a parity basis with the Series 2016, 2018, 2020, 2021
and 2024 Bonds by Facilities Special Taxes levied against taxable property in the District.
The District's total bond authorization is $225,000,000. To date, $215,590,000 in new money bonds
have been issued, leaving $9,410,000 in remaining unissued authorization. The upcoming bonds
will represent the sixth series and are being structured to achieve 110% debt service coverage,
based on the maximum annual Facilities Special Taxes from Developed Property and Designated
Developed Property, after deducting Priority Administrative Expenses. Both the Facilities Special
Taxes and Priority Administrative Expenses are projected to escalate at an annual rate of 2%.
LAGUNA RIDGE BONDS FINANCE TEAM
Jones Hall is acting as Bond Counsel and Disclosure Counsel, Fieldman is serving as Municipal
Advisor, and NBS is serving as Special Tax Consultant.

City of Elk Grove
Request for Underwriting Proposals
Page 3
LAGUNA RIDGE BONDS TENTATIVE SCHEDULE
The schedule below summarizes the key dates that would allow the finance team to complete the
financing.
RFP questions due by 3:00 pm PT April 29, 2026
RFP responses due by 3:00 pm PT May 7, 2026
Underwriter selection completed Week of May 18, 2026
City Council/Authority financing approval July 22, 2026
Price Bonds +/- July 29, 2026
Close Bonds +/- August 12, 2026
CONTENT OF RESPONSE TO REQUEST FOR PROPOSAL
The selection of the firm or firms to serve on the City's underwriter pool will be based on responses
to the questions below. The award and approval of the underwriting engagement will ultimately
be made by the City. Responses should address the Laguna Ridge Bonds as the immediate
pending financing and also reflect the firm's broader capabilities across the range of financing
types described above.
1. Firm Overview and Experience
* Provide a brief description of your firm and its experience underwriting California CFD
Special Tax Bonds and California Lease Revenue Bonds/Certificates of Participation
since January 1, 2021. Include the total number and par amount of sole or senior
managed transactions for each financing type.
* As an appendix, provide a list of this experience including:
* Date of issuance
* Issuer name
* Par amount
* Firm role
* Method of sale
* Underwriter's discount ($/bond)
* Key banking staff members and their roles
2. Proposed Team
Please provide brief biographies of your proposed team members. Identify a proposed
lead banker, engagement manager/day-to-day contact, summarize what each person's
role would be and who you propose to engage as Underwriter's Counsel for the pending
Laguna Ridge Bonds and provide their contact information.

City of Elk Grove
Request for Underwriting Proposals
Page 4
3. Structuring Considerations for the Laguna Ridge Bonds
Assuming the Laguna Ridge Bonds are sold according to the proposed timeline, provide
a summary of your proposed bond structure in the body of your proposal and include the
detailed cash flows as an appendix. Discuss any timing and market considerations and
your thoughts on optional redemption features for the Laguna Ridge Bonds. Please discuss
options for how the City can best use the existing Laguna Ridge cash-funded reserves to
either enhance savings or provide new money to fund infrastructure.
4. Marketing Considerations for the Laguna Ridge Bonds
Considering the current conditions in the municipal marketplace, please discuss your
marketing and sales strategy for the Laguna Ridge Bonds. Considering the City Council
approval date, discuss how long of a marketing period is needed. What strategies would
you plan to utilize to garner investor interest for the Laguna Ridge Bonds.
5. Proposed Compensation for the Laguna Ridge Bonds
Assuming a total par amount of $128.660 million and a 26-year term, provide your
proposed underwriter compensation. Provide proposed takedowns by maturity and a
detailed breakdown of the expense components including the cost of underwriter's
counsel. Please note that the estimated par amount provided herein should not influence
your response to question 3.
6. Proposed Compensation for future Lease Revenue Bonds
Assuming a total par amount of $50.0 million with an underlying AA rating and a 30-year
term, provide your proposed underwriter compensation. Provide proposed takedowns by
maturity and a detailed breakdown of the expense components including the cost of
underwriter's counsel.
7. Rating(s) Strategy
Please discuss your rating(s) strategy for the City based on its existing outstanding General
Fund debt and current rating. What are some of the most important considerations for
maintaining or potentially upgrading the City's outstanding credit rating based on future
issuance of Lease Revenue Bonds.
8. References
Provide three references for each of the following financing types where your firm served
as underwriter: (a) CFD Special Tax Bond transactions, and (b) Lease Revenue Bond
transactions. For each reference, include the agency name, contact information, and a brief
description of the financing.

City of Elk Grove
Request for Underwriting Proposals
Page 5
9. Regulatory/Legal Issues
Discuss recent developments in your firm's and/or assigned personnel's involvement in or
pending regulatory investigation or litigation within the last three years. Please list any
potential conflicts of interest your firm may have in acting as an underwriter for the City.
10. Insurance Requirements
Please review the Insurance Requirements provided an Exhibit A and include in your
proposal a statement that you meet all the City's Insurance Requirements and will provide
a Certificate of Insurance evidencing coverage prior to commencing any work.
DISCLAIMER
The City reserves the right to withdraw this Request for Proposals at any time without prior notice,
to reject any and all proposals, and to waive informalities and minor irregularities in any proposal
reviewed. Additionally, the City reserves the right to negotiate all final terms and conditions of
any preliminary agreement entered into with the underwriter. All proposals submitted to the City
in response to this Request for Proposals shall become the property of the City. The City makes
no representations that any contract will be awarded to any respondent. Nothing in this Request
for Proposals shall be deemed to commit the City to engage any underwriter or to proceed with
the sale of the Bonds. All costs associated with any proposal shall be the sole responsibility of the
proposer.

City of Elk Grove
Request for Underwriting Proposals
Page 6
EXHIBIT A
Insurance Requirements
Prior to commencement of any work under this Contract, Consultant shall provide to the City
proof of, and maintain in full force and effect at all times during the term of the Contract, at
its sole cost and expense, policies of insurance as set forth herein. Consultant shall comply
with all reporting and other provisions of the policies of insurance as set forth herein including,
but not limited to, timely reporting of claims and suits. Further, should Consultant maintain
any programs of self-insurance, Consultant shall comply with the applicable fulfillment of any
self-insured retentions.
1. Errors and Omissions; Malpractice; Professional Liability:
a. Errors and omissions, malpractice, or professional liability insurance
sufficiently broad to respond to the duties and obligations as is undertaken by
Consultant in this Contract.
b. The limits of liability shall not be less than:
Each occurrence or claim: One Million Dollars ($5,000,000)
Aggregate: One Million Dollars ($5,000,000)
c. Both occurrence and claims-made policies are acceptable.
2. Cyber Liability:
a. Cyber Liability Insurance with Coverage sufficiently broad to respond to the
duties and obligations as is undertaken by Consultant in this Contract and shall
include, but not be limited to, claims involving invasion of privacy violations,
private information theft, and release of private information. The policy shall
provide coverage for breach response costs, regulatory fines and penalties as
well as credit monitoring expenses. The policy shall provide coverage for third-
party liability (claims against the City).
b. The limits of liability shall not be less than:
Each occurrence or claim: One Million Dollars ($1,000,000)
c. Both occurrence and claims-made policies are acceptable. Upon termination of
this Contract the same insurance requirements in Section 4 of this Exhibit will
apply for a one (1) year period following such termination. A "tail" policy may
be purchased as an alternative to satisfy this requirement.
3. Acceptability of Insurers: Insurance is to be placed with insurers with a Bests'
rating of no less than A:VII.

City of Elk Grove
Request for Underwriting Proposals
Page 7
4. Any deductibles, aggregate limits, pending claims or lawsuits that may diminish the
aggregate limits, or self-insured retention(s), must be declared to, and approved by,
the City.
5. Consultant shall furnish the City with certificates of insurance and original
endorsements or insurance binders, signed by a person authorized by the insurer to
bind coverage on its behalf, evidencing the coverage required by this Contract. At
the written request of the City, Consultant agrees to furnish a duplicate original or
certified copy of each required policy including the declaration pages, conditions,
provisions, endorsements, and exclusions.
6. The City, due to unforeseen risk or exhaustion, failure, or dilution of Consultant's
insurance coverage, at its discretion, may increase the amounts and types of
insurance coverage required hereunder at any time during the term of the contract
by giving 30 days written notice.
7. Consultant shall serve the City notice, in writing by certified mail, within 2 days of
any notices received from any insurance carriers providing insurance coverage
under this Agreement that concern the suspension, voidance, cancellation,
termination, reduction in coverage or limits, non-renewal, or material changes of
coverage proposed or otherwise.
8. If Consultant fails to procure or maintain insurance as required by this section, and
any Supplementary Conditions, or fails to furnish the City with proof of such
insurance, the City, at its discretion, may procure any or all such insurance.
Premiums for such insurance procured by the City shall be deducted and retained
from any sums due Consultant under the contract.
9. Failure of the City to obtain such insurance shall in no way relieve Consultant from
any of its responsibilities under the contract.
10. The making of progress payments to Consultant shall not be construed as relieving
Consultant or its Sub-Consultants or agents of responsibility for loss or direct
physical loss, damage, or destruction occurring prior to final acceptance by the
City.
11. The failure of the City to enforce in a timely manner any of the provisions of this
section shall not act as a waiver to enforcement of any of these provisions at any
time during the term of the contract.

City of Elk Grove
Request for Underwriting Proposals
Page 8
12. The requirement as to types, limits, and the City's approval of insurance coverage
to be maintained by Consultant are not intended to, and shall not in any manner,
limit or qualify the liabilities and obligations assumed by Consultant under the
Contract.
INSURANCE REQUIREMENTS SUMMARY
TYPE SINGLE LIMIT / AGGREGATE ENDORSEMENTS***
OCCURRENCE
Professional $5,000,000 $5,000,000
Liability/Errors and
Omissions
Cyber Liability $1,000,000 $1,000,000
***Must be actual endorsements. Typed statements on Certificates of Liability are unacceptable.
This is a summary only. Please refer to the insurance section and/or exhibit of this contract for
specific requirements.