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HomeMy WebLinkAboutR-00-0356J-00-372 4/20/00 RESOLUTION NO. Q0 -- A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO ENTER INTO CONTRACTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH EACH OF THE FIRMS OF HANIFEN- IMOFF, INC., DUNLAP AND FIDELITY,. JOINT VENTURE, AND DAIN RAUSCHER FOR FINANCIAL ADVISORY SERVICES FOR A PERIOD OF TWO YEARS WITH THREE, ONE YEAR EXTENSIONS. WHEREAS, the Finance Committee, established pursuant to Resolutions Nos. 98-631 and 98-768 to review and make recommendations regarding the issuance of debt obligations, recommended that a minimum of two, but no more than three firms be appointed as financial advisors to the City of Miami; and WHEREAS, on January 27, 2000, the City Commission authorized the Administration to enter into competitive negotiations with the firms of Dain Rauscher, Inc., Joint Venture of Dunlap and Associates and Fidelity Financial Services, First Southwest Company, Hanifen Imoff, Inc., and P.G. Corgin to provide such financial advisory services; and WHEREAS, a negotiation committee consisting of Carlos Enriques, the Chair of the Selection Committee, Finance Committee member, Bertha Henry, Assistant City Manager of Finance and Administration, and Scott Simpson, Interim Finance Director, recommended to the Finance Committee that the firms of Hanifen CITE' COYSSYON MEETING OF APR 2 7 2000 Resolution No. 1� . Imoff, Inc., Dain Rauscher, and Dunlap and Fidelity, Joint Venture, be appointed as financial advisors to the City; WHEREAS, the Finance Committee at its meeting of April 12, 2000 unanimously recommended that the City enter into contracts with each of the three firms namedby the City Commission based upon variable rates for service; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is hereby authorized!' to execute contracts, in a form acceptable to the City Attorney, with each of the firms of Hanifen-Imoff, Inc., Dunlap and Fidelity, Joint Venture, and Dain Rauscher for financial advisory services for a period of two years with three -one year extensions, is hereby approved. 3i The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. Page 2 of 3 kj..— 0 Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor./ PASSED AND ADOPTED this 27th day of April , 2000. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the Mayor did not indlcaSa apprr'wl.l of this legislation by signing it in the designated pla e provided, said becomes effective with the elapse of ten (10) days m the, date of Comp regarding same, without the Mayor ercia o. ATTEST: WALTER J. FOEMAN CITY CLER APPROV • T�F( . M ANI.1 CORRECTNESS : C/ T 338:RCL , City Clerk If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 3 of 3 TO FROM CITY OF MIAMI, FLORIDA i 19 A INTER -OFFICE MEMORANDUM The Honorable Mayor and Members of the DATE April 18, 2000 FILE City Co ssion SUBJECT: Financial Advisor Recommendation nald H. Warshaw REFERENCES: City Manager ENCLOSURES: RECOMMENDATION Staff recommends approval of the attached Resolution authorizing the City Manager to enter into contract negotiations with the firms of Haiifen-Imoff, Inc., Dunlap and Fidelity (Joint Venture), and Dain Rauscher for financial advisory services. These advisors will be available to Quasi City agencies such as the .Miami Sports and Exhibition Authority, Bayfront Park, Community Redevelopment Agencies, etc. under the terms and conditions of the contract approved • by the City. This recommendation also comes with the unanimous support of the Finance Committee. BACKGROUND On November 12, 1999, the City released the "Request for Proposals" (RFP) for the selection of a financial advisor. A voluntary Pre -Proposal Conference was held on November 23, 1999, and the deadline for submission of proposals was December 8, 1999. An evaluation committee, consisting of Frank Hinton, Miami Dade County Finance Department; Rudy Rodriquez, Comptroller, Miami -Dade County Schools; Carlos Enriquez, President, America Government Certificates; Bertha Henry, Assistant City Manager; and Julie Weatherholtz, Finance Director, was appointed io review and make recommendations to the Finance Committee. Five firms responded to the City's RFP: Dain Rauscher, Inc., Joint Venture: Dunlap and Associates and Fidelity Financial, First Southwest Company, Hanifen-Imoff, Inc. and P.G. Corbin. The evaluation committee recommended a rejection of the initial process due to the disparity in cost of the highest ranked firm and the fact the original "Request for Proposal" only allowed for the selection of one financial advisor. During the selection process, it became evident that the potential for a conflict was a real possibility. That being the case, the evaluation committee felt it would be in the City's best interest to have more than one advisor. The Evaluation Committee recommended that the proposals be rejected and that the Administration be directed to enter into competitive negotiations with all five firms. The U- 5 Finance Committee accepted this recommendation and added that a minimum of two, but no more than three, be selected: The City Commission also accepted this recommendation. The City staff, along with the chair of the Evaluation Committee, Carlos Enriques, engaged in competitive negotiations with the five firms of Dain Rauscher; Dunlap and Fidelity (Joint Venture), First ,Southwest, Hanifen Imhoff, Inc., and P.G. Corbin .for financial advisory services. Prior to the.first session, the City established minimum thresholds that would serve as the ground rules for the negotiation process. They were as follows: ■ The City will select a minimum of two but no more than three financial advisors . ■ The financial advisor selected to work;.on a particular issue will beat the City's sole discretion ■ There will be no minimum guarantee of work assigned ■ Quasi city agencies such as the Miami Community Redevelopment. Agency (CRA), Miami Sports and Exhibition Arena (MSEA), Bayfront Park, and the International Trade Board may use ' any of the designated financial advisors, at their discretion and cost ■ The firm must be willing to change the project manager prior to entering into a contract, if asked ■ Maximum hourly rates and fees were identified (see attached). Three negotiation sessions were held with one firm, P.G. Corbin, dropping out of the process after the first session. Based on information obtained through'the competitive negotiations process, in order of priority, the negotiation team recommended the following Financial Advisory .Firms to the Finance Committee: 1. -Hanifen Imhoff 2.., Dunlap/Fidelity Joint Venture ' 3. Dain Rauscher . The Finance Committee accepted this. -recommendation; which is now being presented to you in the attached resolution for approval.