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County of Hawaii
Statement of Qualifications for Public Finance (Financial Advising)
June 30, 2021
PFM Financial Advisors LLC
Christine Choi, Director
44 Montgomery Street
31d Floor
San Francisco, CA 94104
(415) 393-7247
www.pfm.com
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County of Hawaii
Statement of Qualifications for Public Finance (Financial Advising)
Table of Contents
Transmittal Letter
Statement of Quavication8............................................3
PFM Financial
Advisors LLC
44 Montgomery Street
3nd Floor
San Francisco, CA
94104
415.982.5544
www.pfm.com
June 30, 2021
ABOUT PFM
PFM is the marketing name for a group of affiliated companies providing a range of services. All services
are provided through separate agreements with each company. This material is for general information
purposes only and is not intended to provide specific advice or a specific recommendation
Financial advisory services are provided by PFM Financial Advisors LLC and Public Financial
Management, Inc. Both are registered municipal advisors with the Securities and Exchange Commission
(SEC) and the Municipal Securities Rulemaking Board (MSRB) under the Dodd -Frank Act of 2010.
Investment advisory services are provided by PFM Asset Management LLC which is registered with the
SEC under the Investment Advisers Act of 1940. Swap advisory services are provided by PFM Swap
Advisors LLC which is registered as a municipal advisor with both the MSRB and SEC under the Dodd -
Frank Act of 2010, and as a commodity trading advisor with the Commodity Futures Trading Commission_
Additional applicable regulatory information is available upon request.
Consulting services are provided through PFM Group Consulting LLC. Institutional purchasing card
services are provided through PFM Financial Services LLC. PFM s financial modelling platform for
strategic forecasting is provided through PFM Solutions LLC.
For more information regarding PFM's services or entities, please visit www pfm com.
PfM
44 Montgomery Street
Floor 3
San Francisco CA 94104
pfm. com
June 30, 2021
Ms. Deanna Sako, Director of Finance
County of Hawai'i
25 Aupuni Street, Suite 2103
Hilo, Hawai'i 96720
Submitted via email c stallerie. acheco hawaiicourrt . ov
Dear Ms. Sako,
PFM Financial Advisors LLC ("PFM") is pleased to offer this proposal to provide financial
advisory services to the County of Hawaii ("County"). We appreciate this opportunity to
provide our qualifications and to demonstrate our eagerness to serve as the County's
financial advisor. Our proposal provides a comprehensive look at the factors that
positively differentiate PFM from other financial advisors who may serve the County.
These factors are summarized below.
FINANCIAL ADVISORY LEADERSHIP
PFM has led the nation in advising on transactions for 26 consecutive years. This
ongoing level of participation in the capital markets provides a high level of insight into
the market movement that is of considerable value to our clients. The constant exposure
to market dynamics allows us to understand credit and market demand, which we can
use to the benefit of our clients. PFM is the industry leader in both competitive and
negotiated sales, advising on more transactions than any other financial advisor. In 2020,
PFM advised on 922 transactions totaling over $76.9 billion in par. We focus consistently
on managing transactions efficiently, while ensuring that the clients' objectives are met or
exceeded.
BREADTH OF SERVICES
Among financial advisory firms, only PFM offers such a wide range of services, including
asset and money management, financial planning and budget consulting, arbitrage
rebate and post issuance compliance, as well as management of debt transactions.
These services are customized to fit the needs of each client, yet draw upon our broad
experience to inform each situation.
COMMITMENT TO THE STATE OF HAWAII
PFM has been committed to the State of Hawaii, and we have worked on several projects
at the State level as the State's Independent Registered Municipal Advisor (IRMA),
pricing advisor, financial advisor, investment advisor, and other roles. We worked with the
State's Budget & Finance Department to develop a comprehensive debt policy to govern
the issuance of all State -related debt. In addition, we worked with each State debt issuing
department in order to assess debt affordability, analyzing projections, evaluating metrics
among peers and comparable entities, and reviewing credit fundamentals for each
department. Most recently, we worked with the State of Hawaii Department of
Transportation, Highways Division on a $137.2 million new money financing. Currently,
County of Hawaii
June 30, 2021
Page 2
we are working with the County of Maui on an upcoming general obligation bond new
money transaction.
UNMATCHED QUANTITATIVE AND TECHNICAL CAPABILITIES
In the ever -evolving financial markets, it is critical that the County work with the highest
level of technical resources. PFM has the technical capability to independently develop
or analyze the different financing alternatives and capacity analyses that the County
considers and to efficiently implement a cost-effective approach. Our resources and
analytic capacity are on par with any investment bank, they exceed those of any other
financial advisory group, and the County can be assured that it has access to state-of-
the-art evaluation tools in evaluating all financial alternatives and financial products.
INDEPENDENCE
PFM is an independent financial advisor registered with the MSRB and SEC and does
not engage in the underwriting or trading of financial products or securities. As such, PFM
provides financial advice which is unbiased by the demands of investors, which influence
the decisions of underwriters.
In crafting our response, we have attempted to illustrate our experience and qualifications
and our unique approach to the County. We hope that the collective result is that we
have been successful in conveying a clear picture of our unmatched financial advisory
leadership, our breadth of resources and commitment to the County, and our quantitative
and technical prowess. For all these reasons, we are confident that we can provide a
uniquely strong level of support to the County. We would welcome a chance to discuss
any aspect of our proposal with you.
Sincerely,
PFM Financial Advisors LLC
Brian Gallucci, Managing Director
44 Montgomery Street, 3,d Floor
San Francisco, CA 94104
(415) 982-5544 or galluccib@pfm com
6a—
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Christine Choi, Director
44 Montgomery Street, 31d Floor
San Francisco, CA 94104
(415) 982-5544 or ,noic@pfrn.com
1. THE NAME OF THE FIRM OR PERSON, CONTACT INFORMATION INCLUDING EMAIL
ADDRESS, THE PRINCIPAL PLACE OF BUSINESS, AND LOCATION OF ALL OF ITS OFFICES
The PFM Group of companies is a national leader in providing independent financial advice. We are proud to
help our clients meet their financial challenges with a broad array of products, backed by unquestioned
professionalism and outstanding service.
PFM
PFM Financial
Advisors LLC
Arlington
Cleveland
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RlskManagementAdvisory
Fixed Income Portfolio
Multi-AssetClass
Debt Management and
Rating AgencyiCredt
Management
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StructuredlrwestmentS
Treasury Management
Capital Structure
PubllaPrtvatePartnenshlpa
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Consulting
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Princeton
Swap AdvisoryServices - Paymentaolutions
Laborand Workrorce Consulling Swapvlewefe
Organizational Turnarounds
Retirement anti Post -Employment Consulting 1111111111111111;j V.
Health and Human Services Consulting
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Services provided by affiliatesPFMAssefManagement LLC PFM Swap Advisors LLC, PFM Financial Services LLC PFMGroup
Consulting LLC. and PFM Solutions LLC are offered pursuant to separate agreements
PFVs original financial advisory practice was
founded in 1975 on the principle of providing
sound, independent and fiduciary financial advice
to public entities. Today, PFM is a national leader
in providing independent financial advice to local,
state, and regional government and non-profit
clients for 46 years. PFM and its affiliates have
more than 640 employees, located in 36 offices
nationwide. PFM is headquartered in Philadelphia,
PA. The County would be served out of our San
Francisco office.
Christine Choi, Director in our San Francisco office,
will serve as the contact for this contract.
Christine Choi, Director
PFM Financial Advisors LLC
44 Montgomery Street, 3rd Floor
San Francisco CA 94104
(415) 393-7247
choic@pfm.com
County of Hawaii Statement of Qualifications for Finanaal Advising
PFM Office Locations*
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UNITED STATES
Ann Arbor
Chicago
Arlington
Cleveland
Atlanta
Dallas
Austin
Denver
Boston
Des Aloins
Chandler
Harnsburg
Charlotte
Houston
Cheyenne
Huntsville
'as of April 2021
Long Island
Minneapolis
Richmond
(%wst Hulbruuk) New Orleans
San FranciK*
Los Angeles
New York
San Antonio
Malvern
Orlando
Seattle
Memphis
Orlando East
St. Louis
Miami
Philadelphia
(Cottlerille:
(CoralCabim)
Portland
Wallingford
Milwaukee
Princeton
2. THE AGE OF THE FIRM AND ITS AVERAGE NUMBER OF EMPLOYEES OVER THE PAST FIVE
YEARS;
For over 46 years, PFM's mission and commitment to the highest quality of service has remained unchanged
since the firm's foundation in 1975. Over the past five years, PFM has employed an average of 611
employees.
3. THE EDUCATION, TRAINING, AND QUALIFICATIONS OF THE INDIVIDUAL, OR IF A FIRM, ITS
KEY EMPLOYEES IN ACCORDANCE WITH HRS 103D-304 AND/OR THE PROFESSIONAL AND
SCIENTIFIC OCCUPATION SERIES CONTAINED IN THE UNITED STATES OFFICE OF PERSONNEL
MANAGEMENTS` QUALIFICATIONS STANDARDS HANDBOOK;
FIRM QUALIFICATIONS
PFM is the top-ranked financial advisor in terms 2020 Full Year Overall Long Term Municipal New Issues
of number of transactions and amount.'
Mmicipal Financiai Advisory Ranking - Fidl Credit to Each Financial AcMsor
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While our top ranking is noteworthy, we believe
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firm in the market. As of December 31, 2020,
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PFM served as municipal advisor in 2020 on
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the image to the right.
As a municipal advisor, we fill a unique role in any bond transaction: we serve as a fiduciary to our clients,
providing advice and acting in their best interests at all times. Regardless of the method of bond sale
(competitive, negotiated, or direct placement), a municipal advisor is often viewed as the issuer's "go to"
expert, providing leadership and coordination throughout the financing process. PFM Financial Advisors LLC
is a registered Municipal Advisor, registered with the Securities and Exchange Commission and the Municipal
Securities Rulemaking Board.
The PFM group of companies can provide the County with an array of services in addition to those related to
debt and debt issuance and the scope of services in this proposal, some of which may be offered through
separate entities within PFM as described above, subject to separate mutually agreeable agreements due to
differing regulatory structures. Examples of these complementary services include, but are not limited to,
Arbitrage Rebate services provided by the Arbitrage & Tax Compliance Group within PFMAM, and
Investment Advisory services which are also provided by PFMAM. Synario is a strategic planning tool
provided by PFM Solutions LLC. We can also provide specialized budget, management and labor
management consulting provided by our Management and Budget Consulting team within PFM Group
Consulting LLC.
I Source: Ipreo.
County of Hawaii Statement of Qualifications for Financial Advising 4
PFM'S STATE OF HAWAII EXPERIENCE
County of Maui: We were hired to serve as the County's financial advisor in early 2020. We helped the
County navigate its 2020 General Obligation Bond issuance in the midst of the pandemic. In addition to
supporting development of apprioriate COVID-19 disclosure, we developed a comprehensive credit strategy
to address rating agency concerns with Hawaii credits generally. The County successfully locked in low
borrowing rate of 1.99% and savings of over $2 million (10.6% of refunded par). We are currently in the
process of working with the County on its 2021 General Obligation Bond issuance for additional capital
needs. In addition, we support the County on an ongoing basis reviewing disclosure obligations, bond
planning, CFD planning, and policy development. The County also participated in our in-person client training
in February 2020.
State of Hawaii IRMA Advisory Assignments: We are proud to be the State of Hawaii's first IRMA advising
on several debt -related matters. In our capacity as IRMA advisor, we assisted the State on analyzing
financing options that were presented by underwriters. Some of these included new, innovative techniques.
We carefully analyzed these options in the context of the State's specific goals as well as the associated
financial risks and benefits. For DOT -Airports and DOT -Harbors, we evaluated underwriter proposals
including private financing options for various projects (such as energy conservation project or ESCO) and
refinancings (such a forward refundings). helping to ensure that the DOT was moving in a prudent direction in
line with its goals and objectives. We then helped execute those transactions with the most favorable terms.
Our demonstrated value is in providing a third -party perspective focused on the County's best interest.
Other IRMA Work: Leveraging our broad range of expertise, we have assisted the State with various other
analysis such as evaluation of Step Coupon Bonds reflecting advantages of near-term cashflow savings,
call flexibility and retail participation weighed against the disadvantages of high takedowns, pressure to call
bonds, and uncertain demand. In addition, we have evaluated Transient Accommodations Tax Revenue
Bonds in the context of Turtle Bay. We also evaluated the creation of an excise tax securitization bond
program and potential advantages and disadvantages.
Our work with the State on these diverse projects is indicative of our ability to tackle any issue or question
that comes our way and to provide the most appropriate, informed advice in any situation.
State of Hawai Pricing Advisor: PFM has been engaged as pricing advisor on several of the State's public
and private debt issuances providing pricing advice or assistance on fourteen transactions for various State
departments since 2012 totaling $4.4 billion in par. Since 2011, the State has utilized our dedicated pricing
group and capital markets experience for data driven leverage in negotiated bond sales. Most recently, PFM
supported the State on its 2019 General Obligation Bond sale and supported the negotiation of yields lower
based on market conditions and significant investor demand. The estimated savings for the State as a result
of repricing discussions post -order period alone were about $116,000 in present value debt service on what
would have been $100,000 additional issue par amount. On the following page we present a list of PFM
assisted transactions by Hawaii issuers, including Maui County, the State and various State Departments.
Policy and Affordability: As part of PFM's 2020 engagement with Maui County, we are reviewing and
amending their debt policy with the aim to create a more comprehensinve draft that better aligns with the
latest best practices as well as the County's long-term goals while balancing the need for debt-descipline with
future flexibility.
We were engaged by the State and its departments to formulate a Statewide Debt Policy and Debt
Affordability Study in 2016, and continue to review and update the Affordability Study every two years, that is,
in 2018 and again in 2020. Through that process, we have a strong foundation of understanding with respect
County of Hawaii Statement of Qualifications for Financial Advising
to the various financial nuances specific to the State and the State laws including the applicable Hawaii
Revised Statutes. In 2015, we worked with the State to evaluate appropriate reserve fund balance levels
considering the State's unique economic landscape as well as best practices among peers and highly rated
States, that informed the State's reserve fund policy.
PFM's Hawaii Experience List — Recent Transactions:
PFM served as financial or pricing advisor to several Hawaii transactions in 2020-2021, including issuances
by Maui County, DOT -Airports, DOT -Highways and State B&F, to the tune of over $2.5 billion.
Debt Transaction
Par
Closing
Role
Maui County
General Obligation Bonds, Series 2021
TBD
Ongoing
Financial Advisor
General Obligation Bonds, Series 2020
74,420,000
Sept -2020
Financial Advisor
Sub -Total
$74,420,000
State of Hawaii - Budnet and Finance
General Obligation Bonds of 2020, Series GA
147,555,000
Oct -2020
Pricing Advisor
Tax. General Obligation Bonds of 2020, Series GB
600,000,000
Oct -2020
Pricing Advisor
Tax. General Obligation Refunding Bonds of 2020, Series GC
400,000,000
Oct -2020
Pricing Advisor
Tax. General Obligation Bond Anticipation Note of 2020
$600,000,000
Apr -2020
Pricing Advisor
_
General Obligation Bonds of 2019, Series FW
$431,665,000
Feb -2019
Pricing Advisor
Tax. General Obligation Bonds of 2019, Series FX
$75,000,000
Feb -2019
Pricing Advisor
Tax. General Obligation Bonds of 2019, Series FY
$68.335,000
Feb -2019
Pricing Advisor
General Obligation Bonds of 2018, Series FT
$631,215,000
Feb -2018
Pricing Advisor
Tax. General Obligation Bonds of 2018, Series FU
$50,000,000
Feb -2018
Pricing Advisor
Tax. General Obligation Bonds of 2018, Series FV
$93,785,000
Feb -2018
Pricing Advisor
General Obligation Refunding Bonds of 2017, Series FQ
$2,790,000
Dec -2017
IRMA
General Obligation Refunding Bonds of 2017, Series FR
$15,090,000
Dec -2017
IRMA
General Obligation Refunding Bonds of 2017, Series FS
$275,363,064
Dec -2017
IRMA
General Obligation Bonds of 2017, Series FK
$575,000,000
May -2017
Pricing Advisor
General Obligation Refunding Bonds of 2017, Series FL
$4,200,000
May -2017
Pricing Advisor
General Obligation Refunding Bonds of 2017, Series FM
$1,200,000
May -2017
Pricing Advisor
General Obligation Refunding Bonds of 2017, Series FN
$229,355,000
May -2017
Pricing Advisor
Tax. General Obligation Bonds of 2017, Series FO
$37,500,000
May -2017
Pricing Advisor
Tax. General Obligation Bonds of 2017, Series FP
$7,500,000
May_ -2017
Pricing Advisor
General Obligation Refunding Bonds of 2016, Series FD
$5,300,000
Apr -2016
Pricing Advisor
General Obligation Refunding Bonds of 2016, Series FE
$219,690,000
Apr -2016
Pricing Advisor
Tax. General Obligation Refunding Bonds of 2016, Series FF
$119,730,000
Apr -2016
Pricing Advisor
General Obligation Bonds of 2012, Series EE
$444,000,000
Dec -2012
Financial Advisor
General Obligation Refunding Bonds of 2012, Series EF
$396,990,000
Dec -2012
Financial Advisor
Tax. General Obligation Bonds of 2012, Series EG
$26,000,000
Dec -2012
Financial Advisor
Sub -Total
$5,457,263,064
DOT -Airports
Airports System Revenue Bonds, Series 2020A
$113,140,000
Oct -2020
Financial Advisor
Airports System Revenue Bonds, Series 2020B
$165,885,000
Oct -2020
Financial Advisor
Airports System Revenue Bonds, Series 2020C
$20,295,000
Oct -2020
Financial Advisor
Airports System Revenue Bonds, Refunding Series 2020D
$184,855,000
Oct -2020
Financial Advisor
Airports System Revenue Bonds, Refunding Series 2020E
$98,315,000
Oct -2020
Financial Advisor
Customer Facilit Charge Revenue Bonds, Series 2019A _
f
$194,710,000
Aug -2019
Financial Advisor
Airport System Revenue Bonds, Series 2018A
$388,560,000
Aug -2018
Financial Advisor
Airport System Revenue Bonds, Series 2018E
$26,125,000
Aug -2018
Financial Advisor
Airport System Revenue Bonds, Refunding Series 2018C
$93,175,000
Aug -2018
Financial Advisor
Airport System Revenue Bonds, Refunding Series 2018D
$142,150,000
Aug -2018
Financial Advisor
County of Hawaii Statement of Qualifications for Finanual Advising 6
Debt Transaction
Par
Closin
Customer Facility Charge Revenue Bonds, Series 2017A
$249,805,000
Jul -2017
Financial Advisor
Lease Revenue COPS (ESCO Project
$48,646,463
Mar -2017
1RMA
_
Airport System Revenue Bonds, Series 2015A
$235,135,000
Nov -2015
Pricing Advisor
Airport System Revenue Bonds, Series 2015B
$9,125,000
Nov -2015
Pricing Advisor
Airport System ConRAC 2014 EB -5 Loan
$76,000,000
Aug -2014
Financial Advisor
Sub -Total
$2,045,921,463
DOT -Harbors
DHHL
2016 Direct Purchase
$100,000,000
Dec -2016
IRMA
Sub -Total
$100,000,000
DOT -Highways
Highway Revenue Bonds, Series 2021
$137,205,000
May -2021
Financial Advisor
Highways Revenue Bonds, Series 2011A
$112,270,000
Dec -2011
Pricing
Advisor
Highways Revenue Bonds, Series 2011 B
$5,095,000
Dec -2011
Pricing
Advisor
Sub -Total
$254,570,000
DHHL
Certificates of Participation, 2017 Series A
$15,125,000
Aug -2017
Pricing
Advisor
Revenue Bonds, Series 2017
$30,940,000
Aug -2017
Pricing
Advisor
Sub -Total
$46,065,000
University of Hawai'i
University Revenue Bonds, Series 2015A
$8,575,000
Sep -2015
Pricing
Advisor
University Revenue Bonds, Series 2015B
$47,010,000
Sep -2015
Pricing
Advisor
University Revenue Bonds, Taxable Series 2015C
$17,585,000
Sep -2015
Pricing
Advisor
University Revenue Bonds, Taxable Series 2015D
$25,715,000
Sep -2015
Pricing
Advisor
University Revenue Bonds, Series 2015E
$67,400,000
Sep -2015
Pricing
Advisor
Sub -Total
$166,285,000
Grand Total
$8,144,524,527
TEAM QUALIFICATIONS
We have always devoted the time necessary to effectively manage projects on a timely basis for all of our
clients and the County of Hawaii would be no exception. The PFM Team has the resources and capacity to
be responsive and attentive to the County PFM brings a team of senior experts to best serve the needs of
the County. Brian Gallucci, Managing Director in San Francisco, will serve as engagement manager. He will
ensure that the full resources of PFM are available to the County. Christine Choi, Director in San Francisco,
will provide project management and day-to-day support Supporting them will be Mudra Patel, Senior
Managing Consultant in San Francisco, who will provide project support and extensive quantitative
capabilities including technical analysis, debt capacity scenarios. capital program modeling, and credit -related
research. PFM's team members are Series 50 Registered Municipal Advisors.
There are several professionals that may provide value to the County in specific areas of expertise at some
point on this engagement and will be brought in when needed. Todd Fraizer, Managing Director, heads our
pricing desk and prices more transactions than any other financial advisory and underwriting firm and is
involved in nearly every negotiated transaction for which PFM is financial advisor — several hundred annually.
In addition, Mr. Fraizer provides valuable input on bidding parameters for competitive sales to maximize
bidder interest while preserving issuer flexibility. Peter Shellenberger, Managing Director, is an expert in
surface transportation and transit.
County of Hawaii Statement of Qualifications for F nancial Advising
Please see below for full resumes the core PFM Team members: Brian Gallucci, Christine Choi, and Mudra
Patel.
Brian Gallucci, Managing Director, San Francisco — Engagement Manager
Mr. Gallucci joined PFM in 2005 and is currently staffed in the San Francisco office. Mr. Gallucci has been
working with PFM clients for 15 years. Mr. Gallucci works primarily with airport and seaport clients, and
helped form PFM's Airport Group, but also has experience advising the State of Hawaii on its Airport
Revenue, Highway Revenue, and General Obligation bond issues. During his tenure at PFM, he has been
involved the debt structuring of over $12 billion in bond issues. Although working primarily with transportation
issuers, Mr. Gallucci has a thorough understanding of the State of Hawaii, serving as the State's IRMA, and
providing insight and analysis on the State's many different credits.
Mr. Gallucci will provide technical and quantitative analysis, assist with financial and strategic planning, work
on credit and investor materials, and help monitor the capital markets. In addition to his work with the State,
Mr. Gallucci works with the San Francisco International Airport, the Port of Portland, the Massachusetts Port
Authority, the Los Angeles International Airport, the McCarran Las Vegas International Airport, the Salt Lake
City International Airport, the San Jose International Airport, and other transportation issuers.
Mr. Gallucci received his Bachelor's degree in Business Administration from the Kenan-Flagler Business
School at the University of North Carolina. Mr. Gallucci is a Series 50 Registered Municipal Advisor.
Christine Choi, Director, San Francisco — Co -Project Manager
Christine Choi joined PFM's San Francisco office in 2007. Ms. Choi provides financial advisory project
management for general municipal and transportation issuers including the City and County of San Francisco:
City of Napa, City of Saint Helena, San Francisco International Airport, Los Angeles International Airport, Port
of San Francisco, the Port of San Diego, San Francisco Municipal Transportation Agency, New Mexico
Department of Transportation, and the State of Hawaii, among others.
Ms. Choi's responsibilities involve transaction management and strategic financial planning for municipal
clients. During her tenure at PFM, Ms. Choi has been involved in the debt structuring of over $11 billion in
bond issues. Her experience includes general obligation, certificates of participation, lease revenue, airport
revenue, port revenue, state transportation revenue, sales tax revenue, and water revenue bond transactions.
In addition, Ms. Choi has worked with several large issuers with complex debt and swap portfolios. She has
worked closely with issuers to analyze development scenarios, assist in long-term financial planning
associated with capital projects and debt capacity, financial projection implications, and bond transaction
planning.
Ms. Choi received her Bachelor's degree in Molecular and Cell Biology from the University of California at
Berkeley and a Bachelor's degree in Business Administration from the University of California at Berkeley.
Ms. Choi is a Series 50 Registered Municipal Advisor.
Mudra Patel, Senior Managing Consultant, San Francisco — Project Manager Support
Mudra Patel joined PFM in 2015 and is currently located in the San Francisco office. She utilizes her technical
capabilities to support quantitative analysis and financial modelling for the team. Her responsibilities include
maintaining debt profiles of clients, refunding analysis, debt capacity analysis, bond sizing and structuring,
credit analysis and rating presentation support.
Mudra also provides financial modelling support to toll revenue clients, airports and other transportation
agencies on cash flow analysis, capacity analysis, feasibility analysis, evaluation of alternative project delivery
structures and sensitivity analysis.
County of Hawaii Statement of Qualifications for Financial Advising 8
Prior to PFM Mudra was a credit analyst at Standard and Poor's (S&P) Rating Services During her four
years at S&P, she worked on several GO bonds, special tax bonds and revenue bonds issued by Cities.
Counties, School Districts and Special Districts in the west and south-west regions of United States.
Mudra has a master's degree in Finance from Leavey School of Business at Santa Clara University
(California) as well as an MBA in Finance from Mumbai University She has also passed the Series 50 exam
and is a certified municipal advisor representative.
4. A LIST OF RECENT PROJECTS AND THE NAMES OF UP TO FIVE CLIENTS WHO MAY BE
CONTACTED, INCLUDING AT LEAST TWO FOR WHOM SERVICES WERE RENDERED DURING THE
PRECEDING YEAR; AND
The County is welcome to contact any of the PFM clients referenced in this proposal for more information
about our services. As requested, we have provided references below.
Preillame
200 S. High Street, Kalana O Maui Building, 6th FL, Wailuku, HI 96793
Contact: Scott Teruya, Director, Department of Finance ,...d.w
(808) 270-7722 or Scott Teru a co maui.hi.usJf}�lr'
Reference for: Brian Gallucci,
Christine Choi, and Mudra Patel
PFM has served as the County's financial advisor since early 2020 PFM helped the County navigate its 2020
General Obligation Bond issuance in the midst of the pandemic_ In addition to supporting development of
appropriate COVID-19 disclosure, PFM developed a comprehensive credit strategy to address rating agency
concerns with Hawaii credits generally.
400 Rodgers Boulevard, Suite 700, Honolulu, HI 96819
Contact; Kurt Yamasaki, Acting Fiscal Management Officer
(808) 838-8646 or kurt.yamasaki6a2.nawaii.gov f
Reference for: Brian Gallucci, Christine Choi, and Mudra Patel
Starting 2013. PFM served as the financial advisor to the Airport in planning and executing the multi-year
multi -location Consolidated Rental Car facilities project including advising on Rental Car Lease Agreement
and Indenture an EB -5 loan and two installments of bond issuance in 2017 and 2019. In addition, PFM has
served as financial advisor or pricing advisor on other recent airport bonds issuances
IN 1,71 d No I_
Ahlj-
Department of Budget and Finance
250 South Hotel Street, Room 302, Honolulu, HI 96813
Contact: Marilyn Chock, Public Debt Manager•, M.
(808) 586-1615 or marilyn e.chock(ca hawaii gov
Reference for: Brian Gallucci, Christine Choi and Mudra Patel
PFM has assisted the State of Hawaii on the development of a comprehensive debt policy and debt
affordability study_ In addition, PFM has served as pricing advisor on several of the State's bond issuances.
County of Hawaii Statement of Qual ficat ons for Financial Advising 9
Hawai'i Department of Transportation - Highways Division
869 Punchbowl Street Room 202, Honolulu, Hawai'i 96813
Contact: Tammy Lee, Esq., Administrative Services Officer
(808) 587-2218 or Tammy. L. Lee@hawaii.gov '• �
Reference for: Brian Gallucci, Christine Choi
PFM recently worked with the State of Hawaii Department of Transportation, Highways Division on a new
money financing. We evaluated potential advance refunding opportunities as well as bond structure
alternatives. The Highways Division locked in an all -in borrowing cost of 2.48%.
S. ANY PROMOTIONAL OR DESCRIPTIVE LITERATURE WHICH THE INDIVIDUAL OR FIRM
DESIRES TO SUBMIT.
DEBT OVERVIEW
PFM has utilized its Debt Profile model to monitor the County's debt portfolio. Hawaii County currently has 13
series of General Obligation Bonds outstanding for a total par amount of $412.5 million We present a
summary of the outstanding debt in the table below
2007C
Tax -Exempt
Refunding
16,540,000
1/30/2007
7/15/2021
1,840,000
-
-
2013B
Tax -Exempt
Refunding
21,010,000
2/12/2013
911!2023
7,275,000
9/1/2022
2,525,000
2013C
Tax -Exempt
Refunding
18,470,000
2/12/2013
9/1/2024
8,300,000
9/1/2022
4,315,000
2016A
Tax -Exempt
New Money
99,620,000
2/18/2016
9!1/2035
95,440,000
3/1/2026
71,095,000
2016B
Tax -Exempt
Refunding
26,995,000
2/18/2016
9/1/2026
17,660,000
3/1/2026
3,265,000
2016C
Tax -Exempt
Refunding
44,835,000
2/18/2016
9/1/2027
33,650,000
3/1/2026
10,840,000
2016D
Tax -Exempt
Refunding
28,860,000
2/18/2016
9/1/2028
24,180,000
3/1/2026
10,215,000
2016E
Tax -Exempt
Refunding
25,415,000
2/18/2016
9/1/2029
23,355,000
3/1/2026
11,385,000
2017A
Tax -Exempt
New Money
90,000,000
7/6/2017
9/1/2037
81,530,000
3/1/2027
60,230,000
2017D
Tax -Exempt
Refunding
43,475,000
7/6/2017
9/1/2032
43,475,000
3/1/2027
24,435,000
2020A
Tax -Exempt
New Money
59,815,000
11/4/2020
9/1/2040
59,815,000
9/1/2030
39,545,000
2020B
Taxable
Refunding
2,315,000
11/4/2020
9/1/2022
2,315,000
-
-
2020C
Tax -Exempt
Refunding
13,620,000
11/4/2020
9/1/2029
13,620,000
-
-
Total
490,970,000
412,455,000
237,850,000
The County's debt profile (presented in the chart below) is "tapering' with annual debt service declining over
time. We understand that to be a product of the statutory level debt service requirement on the County's GO
bonds. As noted in the prior section, PFM worked with the State of Hawaii in developing its debt policy and we
are well -versed with the Hawaii Revised Statutes (HRS) and State constitution as they pertain to GO bonds
Furthermore from our experience working with Maui County as well as the State on GO bond issuances we
understand the structuring constraints and parameters that guide the issuance of debt for Hawaii County.
That puts us in an advantageous position to help Hawaii County structure any upcoming bonds issuances.
County of Hawaii Statement of Qualifications for Financial Advising 10
0
Ge ne rat Obligation Bonds Annual Debt Sk�rvice
C 60
C
2001[ 2013E 20130 a 2016A 20168
50
r.d ~ 20160 M20M 2016E 2017A 2017D
40
2020A 82020B u202[',
30
d�
0
■
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
Refunding Opportunity: PFM screened the County'si.
, ,
+ .
outstanding debt. The Series 2013 bonds are callable
Series
2013BC 2016ABCDE
in 2022 with about $6.8 million aggregate callable par.
Call Date
9/1/2022 3/1/2026
These bonds may be advance refunded any time on a
taxable basis. Alternatively, they can be current
Callable Par
6,840,000 106,800,000
refunded with tax-exempt bonds any time on or after
Refunded Par
6,840,000 106,800,000
June 3, 2022. The next call date after that is in 2026
when Series 2016 bonds are callable While these
Taxable Advanace Refunding
bonds may also be advance refunded with taxable debt
NPV Savings ($)
118,456 (3,688.910)
at any time. the negative arbitrage associated with such
NPV Savings (%)
1.7% 45%
long escrows erode savings and are not good
Negative Arbitrage
(56,944) (8,050,592)
candidates for advance refunding.
In the table to the right we present a summary of the
Current Refunding
refunding analysis. A detailed maturity -by -maturity
NPV Savings {$}
242,284 13,347,633
analysis is presented on the following page
NPV Savings {%}
3.5% 12.5%
A taxabte advance refunding of the Series 2013 bonds
would yield net present value (NPV) savings of
Current Refunding (+100 bps)
$118,000 or 1 7'/k, of refunded par at current interest
NPV Savings ($}
149,148 8,828,405
rates (as of June 24. 2021). Waiting to current refund
NPV Savings (%)
2.2% 8.3%
those bonds WLth tax-exempt debt in 2022 would result
in slightly better NPV savings of $242,000 or 3.5% of refunded par. If tax-exempt rates
increase by about 100
bps (1.0%) between now and March 2022, the NPV savings would be about $149,000
or 2.2% of refunded
par. The small amount of callable bonds and limited savings do not support a stand-alone refunding
transaction. Rather the County could pursue the refunding
alongside any new money transaction that the
County may be planning in the near term.
County of Hawaii Statement of qualifications for Financial Advising 11
D
We also evaluated the taxable advance refunding of Series 2016 bonds. However as mentioned before a
long escrow (4.5 yrs) with high negative arbitrage ($8.0 million) do not support such a refunding at this time_ A
future tax-exempt current refunding in 2026 assuming today's interest rates would result in a $13.3 million
NPV savings or 12.5% of refunded par. Even if rates were 1% higher than today, the NPV savings would be
about $8.8 million or 8.3%,
Refunded Bond Information
Taxable Advance Refunding
Current Refunding
Current Refunding (+100 bps)
Series
Maturity
Par
Coupon
PV Savings
Neg. Arb.
PV Savings
Breakeven
PV Savings
2013B
9/1/2023
2,525,000
3.00%
10,387
0.4%
(18 445)
43,910
17%
130%
18 161
07%
2013C
9/112023
2.115,000
4.00%
29,218
1.41u
(15 563)
57,884
27%
1 33%
36 159
1.7%
2013C
9/1/2024
2.200,000
4.00%
78,871
3.6%
(22,937)
140,489
64%
136%
94828
48 059
4.3%
0.9%
201 GA 9/1/2026 5.645,000 5.00%
(248 299; A 41.1 (264 589)
77.016 14% NA
201 GA
9/112027
5935,000
5.00%
(105.342}
41 8$',)
(291 968)
358.322
60%
NA
265 558
4.5%
201 GA
9/1/2028
6.235,000
5.00%
(151.483;
(2 4 --Vi
(445 428)
654,565
105%
NA
490 087
7.9%
2016A
9/1/2029
6555.000
5.00%
(138 2341
;2 1Y-)
(540 378)
947,481
145%
NA
703 491
10,7%
2016A
9/1/2030
6.890,000
5.00%
(59 945;
;1 Ox:)
(598.794)
1 238.219
180%
NA
907 168
13.2%
201 GA
9/1/2031
7245,000
5.00%
24,034
0.3%
(645,782)
1.539,349
212%
3.84%
1,112989
15.4%
2016A
9/1/2032
7615.000
5.00%
(2 8841
;0 0`.'e)
f746 196)
1 856,365
244%
NA
1,326 095
17.4%
201 GA
9/1/2033
8010.000
5.00%
27,881
0.3%
(820 116)
2 166,511
270%
365%
1,524.444
19.0%
2016A
9/1/2034
8 335,000
3.00%
(968 984)
(11.6%)
(842 458)
1 115.455
134%
NA
418.498
5.0%
2016A
9/1/2035
8630.000
4.00%
(518.201)
(6.0%)
(929 793)
1,975,627
229%
NA
1,142.895
13.2%
2016B
9/1/2026
3265.000
4.00%
(153.665)
(4 7%)
(149 563)
28,244
0.9%
NA
11.577
44,994
D.4%
0.9%
2016C 9/1/2026 5285.000 5.00%
(232.464) (4.4%) (247 715)
72,105 1.4% NA
2016C
9/1/2027
5555,000
5.00%
(98,5981
(1 8%)
(273 274)
335,379
6,0%
NA
248,555
4.5%
2666--9-11'12026
3235,000
5.00%
(142.294)
(4 4%)
(151.629)
44,136
1.4%
NA
27.541
0.9%
201613
9/1/2027
3405,000
5.00%
(60.43(31
(1 8%)
4167 507)
205,575
6.0%
NA
152,355
4.5%
2016D
9/1/2028
3.575,000
5.00%
(86.857)
(2.4%)
(255 398)
375,312
105%
NA
281,004
7.9%
2016E
9/1/2026
2,725,000
5.00%
(119.861)
(4.4%)
(127 725)
37,178
14%
NA
23,200
0.9%
2016E
9/112027
2825,000
2.00%
(152.127)
(5.4%)
(129,567)
43,852
16%
NA
951
0.0%
2016E
9/1/2028
2885,000
225%
(226.779)
(7.9%)
(193 279)
105.745
3.7%
NA
32,552
1.1%
2016E
9/1/2029
2950,000
2 503.
(264,382)
(9,0%)
(229 414)
171.196
5.8%
NA
66,392
2.3%
We would love the opportunity to support the County in navigating its debt management opportunities and
pursuing any financing strategies to further its financial objectives.
County of Hawaii Statement of Qualifications for Financial Advis!ng 12