HomeMy WebLinkAboutR-91-0191F
3/7/91
RESOLUTION NO. 91 " 1.91
A RESOLUTION, WITH ATTACHMENT(S), AUTHORIZING
THE CITY MANAGER TO DISTRIBUTE AND ADVERTISE
THE ATTACHED REQUEST FOR PROPOSALS (RFP), IN
SUBSTANTIALLY THE ATTACHED FORM, FOR THE
PROVISION OF MANAGING BOND UNDERWRITING
SERVICES, AND AUTHORIZING THE APPOINTMENT OF
A FIVE -MEMBER SELECTION COMMITTEE BY THE CITY
MANAGER TO EVALUATE PROPOSALS THAT MAY BE
SUBMITTED, SAID COMMITTEE TO BE COMPOSED OF
INDIVIDUALS WHOSE NAMES SHALL BE FURNISHED IN
WRITING BY MEMBERS OF THE CITY COMMISSION.
WHEREAS, the City of Miami expects to issue in the future
bonds and notes on a negotiated basis to finance the construction
of capital improvement projects; and
WHEREAS, it is in order at this time to select teams of
managing bond underwriters that will serve on a'rotating basis
when negotiated issuances of bonds and notes are required; and
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WHEREAS, it is in the City's best interest to have a
Selection Committee review and evaluate the responses to the>
City's Request for Proposals (RFP) based upon the criteria as
described in the RFP with each member of the City Commission
nominating one Selection Committee member; and
WHEREAS, said Selection Committee will, subsequent to the
review and evaluation of the submitted proposals, report to the
City Manager its rankings of proposers; and
WHEREAS, the City Manager will then make recommendations to
the City Commission regarding the appointment of teams of
managing bond underwriters;
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,
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Section 2. The City Manager is hereby authorized to
distribute and advertise the attached Request for Proposals
(RFP),1/ in substantially the attached form, for the provision of
managing bond underwriting services.
Section 3. The appointment of a five -member Selection
Committee by the City Manager for the review and evaluation of
submitted proposals is hereby authorized, said Committee to be
composed of individuals whose names shall be furnished in writing
by members of the City Commission.
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Section 4. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 14th day of March , 1991.'
XAVIER L. SUA EZ, YOR
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herein authorization is
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further subject
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to compliance
with all
requirements that
may be imposed
by the City
Attorney,
including but not
limited to those
prescribed by
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applicable
City Charter and Code provisions.
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REQUEST
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PROPOSALSNow
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MANAGING
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UNDERWRITERS
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TAX—EXEMPT
AND TAXABLE NOTE AND BOND FINANCINGS
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THE CITY OF MIAMI, FLORIDA
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RFP ISSUE DATE:
March 15, 1991
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5:00 P.M. April 1, 1991
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REQUEST FOR PROPOSALS
The 'City of Miami, Florida (the "City") is soliciting proposals
from qualified investment banking firms to serve as its managing
underwriter(s) for the issuance of negotiated tax-exempt and
taxable note and bond financings. The City will designate one or
more firms to serve as senior book -running managing underwriter
with the option of designating several firms to serve as co --senior
managing underwriter(s) and co -managing underwriter(s).
This Request For Proposals (11RFP11) does not commit the City to
award a contract, to pay any costs incurred in the preparation and
presentation of a proposal, or to procure or contract for services.
The City reserves, at its sole discretion, the right to reject any
and all proposals, and to request clarification of information
contained within proposals. The City also reserves the right, at
its sole discretion, to negotiate with all qualified proposers and
to designate those proposers whose responses are most advantageous
to the City.
Upon receipt of this RFP and through the selection of underwriters,
firms may not contact the City Commission, the selection Committee,
or the City's Staff, and if such contact is made, this may be
grounds for disqualification of the firm. Questions regarding
procedures and this RFP should be directed to the City's Financial
Advisor. All proposals will be binding for a period of 180 days,
unless otherwise extended by the City.
CITY COMMISSION
CITY OF MIAMI, FLORIDA
DATED: March 15, 1991
It is the responsibility of the senior book -running managing
underwriter(s) and co -senior managing underwriter(s) to:
participate with the city's Finance Department Staff and
Financial Advisor in the development and preparation of
a plan of financing and pricing structure and the
ex6cution thereof;
- develop a marketing plan in conjunction with the
Financial Advisor for the City's notes and/or bonds;
participate with the Financial Advisor in the development
and preparation of presentations for the procurement of
credit enhancement and credit ratings (if any);
assist Bond Counsel and the Financial Advisor in the
development and preparation of the necessary financing
documentation;
allocate notes and/or bonds in a fair and equitable
manner consistent with direction given by the City
through its Financial Advisor among the management group;
provide supporting documentation to the City and
Financial Advisor regarding rates on comparable
financings in the market concurrent with the City's notes
and/or bonds, and provide the Financial Advisor with a
distribution report on a timely basis;
establish and maintain an active secondary market for the
City's notes and bonds.
It is the responsibility of co -managing underwriter(s) to:
- review and comment on the preliminary financing structure
and final pricing structure;
participate in the underwriting risk pursuant to an
agreement among underwriters;
- generate market interest and sell the City's notes and/or
bonds.
establish and maintain an active secondary market for the
City's notes and bonds.
Firms are encouraged to propose additional services as senior book -
running managing underwriter, co -senior managing underwriter, and
coy -managing underwriter.
Wag* - • • •U•'•
General Requirements. Each proposal must include a transmittal
letter, not exceeding two (2) pages, signed by the person who will
have primary responsibility for the day -today and on -site
management of this engagement and who has the necessary authority
to commit the firm, the firm's capital, and the firm's resources to
provide the underwriting services desired by the City.
Specific Requirements. Firms must submit a complete response to
each of the questions in the order listed. Failure to submit all
requested information may result in rejection of the proposal.
Responses to each question should begin on a separate page, with
the question restated at the top of the page, except where
indicated otherwise. Firm's responding to this RFP must have at
least two (2) years of continuous and active experience in the
public finance market.
Responses to each question should be concise and brief. The
proposal will be limited to thirty (30) single spaced pages,
excluding resumes and appendices.
The City reserves the right to appoint more than one senior book -
running managing underwriter. All firms submitting proposals to
serve as senior book -running managing underwriter or co -senior
managing underwriter will also be considered for co -managing
underwriter. No joint proposals will be accepted. The City will
form underwriting teams.
Minority Participation. The City has a stated procurement goal of
51% of all procurement contracts to minorities. Minority
procurement goals are defined by City Ordinance Number 10062, as
amended,to mean (a) 17% Black; (b) 17% Hispanic; and (c) 17%
Women -owned firms. Proposals from minority -owned firms should
specifically indicate the ownership interest by minorities. For
additional information and certification, please contact Ms. Judy
Carter at (305) 575-5174.
Proposals should also indicate those individual(s) who are
members of an ethic, racial, or gender minority who will be
directly involved with this engagement.
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proposal Submittals. All proposals must be received by $too p.m.
ga►stern standard Time, April 3, 1991s
Ten (10) copies to:
Carlos E. Garcia, CPA
Director
Department of Finance
City of Miami, Florida
3006 Aviation Avenue, 'Third Floor
Miami, Florida 33133
six (6) copies to:
Mr. Howard V. Gary
President
Howard Gary & Company
3050 Biscayne Boulevard, Suite 603
Miami, Florida 33137-4163
(305) 571-1380
Sixteen (16):copies of the proposal must be submitted by the date
i and time specified. Proposals received after the specified time
and date will be rejected. Proposals may be mailed or delivered
in person.
Procedural Questions. The City will not hold a.pre-proposal
conference. Any questions concerning this RFP or the City should
be limited to .those of a procedural nature and should be directed
to the City's Financial Advisor.
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Section III - QUESTIONNAIRE
1. Provide the name of the firm submitting the proposal,
including the name, title, address, telephone and telecopier
numbers of the primary individual responsible for the day-
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to-day and on -site management of this engagement and
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proposal. Specify the position for which your firm should be
considered: senior book -running managing underwriter, co-
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senior managing underwriter, or co -managing underwriter.
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2. Demonstrate management's commitment to the public finance
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market. Discuss management's commitment to municipal note
and -bond underwriting, trading, -and sales.
3. Provide an introduction to your firm by briefly describing
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the following:'
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a. its origin and background;
be its principal (core) business; and
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cf, its size, in terms of employees (delineate account
executives and public finance professionals), capital,
and number of offices (excluding affiliate company
offices)
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4. With respect to your firm's capital, using information from
your firm's most recent FOCUS It Report, specifically
indicate the following:
a► 'Total Capital:
b. Equity Capital:
c. Net Capital:
d. Excess Net (Uncommitted) Capital:
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e. Capital to Asset ratio based on your latest FOCUS II
Report:
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Indicate the date as of which the above figures were
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determined. Describe any events which may have had or may
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have a material impact on your firm's capital position since
the date of your firm's most recent FOCUS II Report and
enclose a copy of said Report as an appendix.
5. Provide a statement regarding the commitment of your firm to
employing persons of an ethic, racial, or gender minority -
group within your firm. Include specifically the number and
percentage of ethic, racial, and gender minority employees
in your firm by level of responsibility. Delineate between
management, professional, administrative, and clerical.
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Indicate whether your firm is minority owned. If your firm
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is a public company, indicate what percentage of the Board
of Directors are members of an ethic, racial, or gender
minority.
6. Describe your firm's presence within the City and the.,State
of Florida. Indicate the number of offices and number of
employees (delineate between account executives and public:
finance professionals) you have in the City and State, as
well.as any other information you consider relevant.
7. Provide a statement of assurance that your firm or any
individual in your firm is not currently in violation of any
regulatory agency (Securities and Exchange Commission,
Municipal Securities Rule Making Board, National Association
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of Securities Dealers, Inc., and the State of Florida) rules
to a degree that it may have a material impact on the firm's
operation.
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8. Provide a statement of assurance that your firm or any
individual in your firm has not been in violation of any
regulatory agency rules (Securities and Exchange Commission,
Municipal securities Rule Making Board, National Association
of Securities Dealers, Inc., and the State of Florida)
within the last five (5) years. If there have been
violations, provide a detailed and concise explanation.
9. Provide in tabular form, information on tax-exempt and
taxable note and bond financings for which your firm served
as the senior book -running managing underwriter in the State
of Florida. List only those financings completed after
January 1, 1987. Provide a separate list for financings on
which your firm was co -senior managing underwriter or co -
managing underwriter. Indicate sale date, par amount,
issuer, role, ratings, type of sale, credit enhancement,
orders, allocation, gross spread on a per $1,000 bond basis
by component, and special features. Furthermore, indicate
your firm's PSA, IDC, and/or IDD ranking (if any).
10. Provide your firm's expertise in financings which are
relatively comparable to the City's financings. Include a
discussion of general obligation, revenue, certificates of
participation, master lease, special obligation, special
assessment, tax increment financings, as well as financings
subject to annual appropriations.
11. Provide your suggestions as to how the City should structure
the following financings:
a. fixed rate;
b. variable rate;
C. use of special structuring features (CABs, OIPs, OIDs
or other features);
d. credit enhanced or stand-alone credit of the City;
e0 trade-offs of structuring a financing with non -callable
bonds in order to lower the overall bond yield vs. call
provisions which result in a higher yield? Over the
next 12 months, do you anticipate any changes in
municipal bond call provisions and what type of changes
should the City expect to see in the market place.
f. what techniques has your firm developed that would give
the City the most aggressive prices?
e. other financing options.
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12. Since 3anuary 1997, has your firm been senior book -running
managing underwriter, co -senior managing underwriter, or co -
managing underwriter on any defaulted bonds? What was your
firm's involvement and what were the repercussions?
13. 'that is your firm's perception of the mix of potential
buyers for the City's issues? Discuss your marketing plan on
how your firm will obtain this investor mix, assuming market
conditions as of the first three (3) weeks of March, 1091.
Additionally, present information on five (5) recent
financings where your firm served as senior book -running
managing underwriter, co -senior managing underwriter, or co -
managing underwriter and the breakdown of where the bonds
were sold using the format below:
Purchaser of Issue
Institutional (specify)
Bond Funds (specify)
Retail (specify)
TOTAL
100
14. Comment on the enormous restructuring that has taken place
at many commercial and investment banking firms, and what
changes do you anticipate at your firm within the next three
(3) years? How will the municipal bond market change in the
next one (1) to five (5) year time period?
a. Rank in order of size of the market which type of
investor is currently buying municipal bonds.
b. Rank in order of size of the market which type of
investor is currently buying the City's credit?
15. Describe your firm's institutional and retail distribution
capabilities within and outside of the State of Florida.
16. Provide a recommendation on management group size and
composition. Describe your approach to allocating fees and
bonds among the managing underwriter(s). If you are applying
as senior book -running managing underwriter, include a list
of five (5) recent Florida financings in which you served as
senior book -running managing underwriter, and indicate how
you allocated fees and bonds among the managing
underwriter(s) and syndicate member(s) (if any), with
particular emphasis as to allocations among minority firms.
17. Describe what you believe may be any unique or unusual
factors affecting the marketing and sale of the City's notes
and bonds.
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18. Describe what you believe may be any unique or unusual
factors affecting the marketing of the notes and bonds sold
by issuers in Florida.
19. What structure for co -senior managing underwriter(s), co -
managing underwrriter(s), and underwriters' counsel would
most effectively meet the City's commitment to minority -
owned firms.
20. Identify and provide resumes for the investment banking,
underwriting, trading, and sales personnel who would be
assigned to this engagement and their level of
responsibility. Describe the professional background of
these individuals, in particular their relevant financing
experience, as well as their experience with non-traditional
securities and derivative products (such as, interest rate
swaps, forward interest rate refundings, commercial paper).
Provide three (3) references (including telephone numbers)
for the senior professional(s) responsible for the day-to-
day management of this engagement. Firm's may not deviate
from the assigned personnel without the express consent of
the City. Specify the type and designate the percentage of
work for which each team member will be responsible for.
21. Respond to the following questions dealing with fees in
connection with:
i. $15,000,000 note transaction;
ii. $20,000,000 revenue bond transaction; and
iii. $20,000,000 refunding transaction.
a. Management Fee. If your firm is selected as senior
book -running managing underwriter, propose a management
fee (on a per $1,000 bond basis) for your firm only and
one for the entire management group. If your firm
proposes for other roles (co -senior managing
underwriter or co -managing underwriter) specify
management fee and role for your firm and the entire
management group. If your firm is selected, is the
proposed management fee firm?
t b. Expenses. Detail the categories of expenses for which
{ your firm would be expected to be reimbursed for as a
managing underwriter and the delineate the amounts on
an actual dollar and per $1,000 bond basis.
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C. Takedown. For the range of financial structures which
your firm proposes, describe levels of takedown by
maturity and the basis upon which the level should be
determined. Specific levels should be described for
market conditions existing during the first three (3)
'± weeks of March, 1991.
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d. Underwriters'.... -Risk. Describe circumstances in
which an underwriting risk component of the
compensation should be considered. A range of
levels together with description of circumstances
and rationale for this range should be provided
(on a per $1,000 bond basis).
Section.IV_-- selection Criteria
The evaluation criteria for all proposals will be based on
the following:
1. Creativity and responsiveness to the City's
requirements.
2. Management's commitment to public finance.
3. Municipal finance experience.
4. Experience with financings having features similar
to the City's financings.
S. Minority compliance.
6. Personnel assigned.
7. Underwriting, trading, and sales capability and
distribution strengths. The City desires
geographic (national, regional, local) and sector
(institutional, retail, other) diversification.
8. Capital.
9. Proposed compensation.
10. Other services.
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