San Antonio Water System

SOLICITATION NO: R-23-04-RL

REQUEST FOR PROPOSALS

REVOLVING CREDIT AGREEMENT FOR TAX-EXEMPT COMMERCIAL PAPER PROGRAM

A.   Objective

San Antonio Water System (“SAWS”) is soliciting responses to this Request for Proposals (“RFP”) from individual banks or a syndicate of banks willing to provide liquidity in an amount of $100,000,000 to serve as liquidity facility provider for a Tax-Exempt Commercial Paper (“TECP”) Program that has a total capacity of $500,000,000. This RFP is being issued to replace $100,000,000 of existing liquidity that has an existing expiration date January 5, 2024. SAWS additionally has a liquidity facility in place to support $400,000,000 of the TECP program expiring October 4, 2026. Selection will require services to be performed by the selected qualified bank or banks.

B.   Background

SAWS is a municipally owned utility providing water, wastewater, and recycle water services to a customer base of approximately 1.7 million people. SAWS provides both retail and wholesale water and wastewater service. In addition, SAWS provides chilled water service to various customers in the downtown area.

SAWS came into existence on April 30, 1992, upon adoption of City Ordinance No. 75686 (“Ordinance”) by the City Council of the City of San Antonio, Texas. This ordinance effectuated the consolidation of all water related agencies in the City into one entity, and placed management and control of SAWS in a seven (7) member board of trustees (“Board”). Members of the Board are appointed for four (4) year staggered terms, with the Mayor serving as an ex-officio board member.

As stated above, the City of San Antonio, Texas (“City”), acting by and through SAWS, has authorized a TECP Program in the amount of $500,000,000. Currently, SAWS has a liquidity facility in place to support $400,000,000 of the TECP program expiring October 4, 2026 with JPMorgan Chase Bank, N.A. for the City of San Antonio, Texas Water System Commercial Paper Notes, Series A. The second agreement with Well Fargo Bank, N.A., to be replaced with the credit agreement solicited pursuant to this RFP, supports $100,000,000 City of San Antonio, Texas Water System Commercial Paper Notes, Series B and expires January 5, 2024.

 Estimated Timeline

June 9, 2023..................................................................................... RFP Released

June 16, 2023 by 4:00 p.m. CDT............................ Receipt of Written Questions Due

June 22, 2023 by 4:00 p.m. CDT........................................ Q & A Posted to Website

June 30, 2023 by 2:00 p.m. CDT........................................................ Proposals Due

July 2023................................................................................. Proposals Evaluated

July/August 2023............................................ Negotiations and RCA Documentation

August/September 2023................................................ SAWS Board Consideration

August/September 2023.............................. City Council Consideration and Approval

August/September 2023.............................................. Non-Selection Notices mailed

August/September 2023......................................................... Closing of TECP RCA

The dates listed above are subject to change without notice.