NHCRWA RFP No. 2025-01 for Financial Advisor Services

The North Harris County Regional Water Authority (“Authority”) is requesting qualified and experienced firms to provide financial advisor services. The Authority is responsible for securing a long-term supply of quality surface water and to facilitate the transition to surface water in compliance with the Harris-Galveston Subsidence District’s (the “HGSD”) requirements. The Authority is the single entity empowered to negotiate for a supply of surface water for the municipal utility districts, small municipalities, and other permitted well owners within its boundaries. The most critical task is developing and constructing the infrastructure to bring surface water to the participants within the boundaries of the Authority. SCOPE OF WORK A. Background and Purpose Since inception, the Authority has secured over $2B in financing for the development of its surface water transmission and distribution system through revenue bonds and the Texas Water Development Board (TWDB) State Water implementation Fund for Texas (SWIFT) program. The Authority anticipates needing over $3B of funding to complete both the current 2025 conversion and future conversions required by HGSD, of which $800M is already committed by TWDB. The Authority desires to contract with a financial (municipal) advisor to support the management of current debt, debt refunding if advantageous to the Authority, and the issuance of future debt either through TWDB, revenue bonds, or other funding mechanisms. Information on the Authority’s current obligations can be found here: NHCRWA FS Audit 2023 Final 062424. The objective of this Request for Proposals is to select a single firm to provide financial (municipal) advisor services to the Authority for a term of up to four years, renewable annually. B. Services It is anticipated that the selected respondent will perform the following services:
Provide financial advice regarding current capital and bond market conditions and trends, financial products, credit analysis, bond capacity analysis, alternative financing, State and/or Federally subsidized loan programs, targets for reserves, use of unrestricted cash funds, and other specialty financing. Provide strategies for managing the Authority’s current and future debt, including, but not limited to, the evaluation of opportunities to refinance and restructure outstanding debt with recommended timing, structure, and method of bond sales. Support all aspects of issuance of new bond debt and refunding including coordination with bond insurance, bond counsel, the bond underwriter, rating agencies, and rate consultant. Support all aspects of TWDB SWIFT financing process, including multi-year closings for existing and future commitments. Recommend as to the advisability of obtaining, maintaining and/or enhancement of credit ratings and coordinating preparation and submission of information to rating agency. Provide minimum quarterly updates to staff and once per year in-person update to the Board of Directors on market conditions, trends. Provide more frequent coordination on years with new debt issuance or refunding. Coordinate with Authority staff and consultants for long-term financial planning. Additional financial advisor services upon request.