Memorandum for Record
Ralph E. Huber, Chief Financial Officer
Alex Hinojosa, Sergio Molina, Ruben Saenz, Co-Financial Advisors
Evaluation of Underwriter Proposals/Selection of Underwriter Pool
In response to a Request for Proposal distributed on May 8, 2001, nineteen proposals were receivedon May 18, 2001 from investment banking firms interested in participating in the System¶s underwritingpool.The following team using SAWS Decision Analysis tools evaluated the proposals:Ralph Huber ± Chief Financial Officer Alex Hinojosa ± Finance Director Sergio Molina ± Treasury Manager Bob Estrada ± Financial Advisor (Estrada Hinojosa)Larry Jordan ± Financial Advisor (Estrada Hinojosa) Anne Burger Entrekin - Financial Advisor (First Southwest)The evaluation team met on Tuesday, May 22, to review composite and individual ratings of theproposals. Firms were asked to categorize their business as national, regional, and SMWBE in their proposal. Ruben Saenz, Director of Contracting attended this meeting and observed the evaluationand selection process. Attached is a worksheet indicating the relative ranking for each firm based on average scores for eachevaluator. An additional worksheet is attached indicating how often each firm was ranked first, second,third, etc. by each evaluator. An approach was discussed and agreed upon by the team to recommend to the Board a ³pool´ of underwriting firms. It was also agreed that oral interviews would be conducted prior to forming each³syndicate,´ for purposes of determining which firm would serve in the senior manager role. Asyndicate of firms would be formed each time a transaction was planned, specific to meet the needs of that transaction (e.g. size, structure, and complexity). Over time, firms in the syndicate will be rotatedand evaluated as to their performance in pricing and selling bonds. If a firm was deemed marginal or non-performing, they may no longer be included in the pool. Conversely, a firm not recommended for the original pool, could earn its way in by submission of timely and meaningful reports and analysespertinent to SAWS debt situation.
San Antonio Water System