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HomeMy WebLinkAboutR-88-0333J-88- 317 • 4/07/88 RESOLUTION NO. 149--33%1 A RESOLUTION AUTHORIZING AND INSTRUCTING THE DIRECTOR OF FINANCE TO ADVERTISE AND DISTRIBUTE THE ATTACHED REQUEST FOR PROPOSALS FOR FINANCIAL ADVISORY SERVICES FOR THE CITY OF MIAMI FOR A TWO-YEAR PERIOD, AND APPOINTING A REVIEW COMMITTEE. WHEREAS, the current contract for Financial Advisory Services expired on April 1, 1988: and WHEREAS, it is in order at this time to advertise a Request for Proposals (RFP) for Financial Advisory Services for a two-year renewals exercisable at the option of the City; and WHEREAS, it is in the best interest of the residents of the City to have a Committee review and evaluate the proposals based upon the criteria as defined in the RFP; and WHEREAS, said Selection Committee (Attachment "B") will, subsequent to the review and evaluation of proposal, make a report to the City Manager of their recommendations; and WHEREAS, the City Manager will make a recommendation to the City Commission regarding the selection of a Financial Advisor; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The Director of Finance is hereby instructed to distribute and advertise a Request for Proposals (Attachment "A") for Financial Advisory Services for a two-year period, with two (2) one-year renewals exercisable at the option of the City. Section 2. The Committee for the Review and Evaluation of proposals consisting of members as listed in Attachment "B" to this Resolution is hereby established. ��yy_��+e 4 c T✓ ENC!,xv. CITY COMMISSION MEETING OF APR 14 1988 ESOLUTION No SS-333 • a P"88D AND ADOPTID this loth. day of April , 19e19. ATTE NATTY HIRAI City Clerk PREPARED AND APPROVED BY: ROBERT F. CLARK Chief Deputy City Attorney XAPPROV%AS TO FORM ECTNESS: D UGHERTY -- City Attorney RFC/wpc/ebg/M666 -Jeo/ z - 4ZM,4� XAVIER L. SUAWK , Mayor - 2- SS-333 0 ATTACHMENT A CITY OF MIAMI DEPARTMENT OF FINANCE SOLICITATION FOR FINANCIAL ADVISOR SERVICES I. PURPOSE OF REQUEST The City of Miami is requesting proposals for the purpose of retaining a firm (the firm) to act as the City's financial advisor to assist in dealings with rating agencies, to assist in development of debt management and capital improvement programs, and to help develop the means to finance future capital requirements. II. TIME SCHEDULE The City will use the following timetable, which should result in selection of a consultant by June 30, 1988. Date April 18, 1988 Send Out request for proposals " April 28, 1988 Pre -proposal conference May 12, 1988 Open written proposals " May 26, 1988 Select finalists for interviews " June 9, 1988 Conduct interviews III. INSTRUCTIONS TO PROPOSERS Sealed proposals, subject to the terms and conditions of this Request for Proposal, will be received by the Director Of Finance, City Hall, 3500 Pan American Drive, Miami, Florida 33133, at the time and date indicated below for furnishing the services within the time specified by the offeror. ISSUE DATE: APRIL 15, 1988 PURPOSE: TO RETAIN A FIRM TO ACT AS THE CITY'S FINANCIAL ADVISOR TO ASSIST THE CITY IN DEALING WITH THE RATING AGENCIES, IN DEVELOPMENT OF DEBT MANAGEMENT AND CAPITAL IMPROVEMENT PROGRAMS AND MEANS TO FINANCE FUTURE CAPITAL REQUIREMENTS. AGENCY: DEPARTMENT OF FINANCE DATE/TIME OF CLOSING: 4:00 P.M. MAY 12, 1988 CONTRACT ADMINISTRATOR: CARLOS E. GARCIA, DIRECTOR OF FINANCE. ANY PROPOSAL RECEIVED IN THE OFFICE OF THE DIRECTOR OF FINANCE AFTER THE ANNOUNCED TIME AND DATE OF CLOSING, WHETHER BY MAIL OR OTHERWISE, WILL NOT BE CONSIDERED AND WILL BE RETURNED UNOPENED. "--333 1. E THE CITY OF MIAMI RESERVES THE RIGHT TO ACCEPT ANY PROPOSAL DEEMED TO BE IN THE BEST INTEREST OF THE CITY, TO WAIVE ANY IRREGULARITIES IN ANY PROPOSAL OR TO REJECT ANY OR ALL PROPOSALS AND TO READVERTISE FOR NEW PROPOSALS. INTERPRETATION OF REQUEST FOR PROPOSAL Technical and contractual questions pertaining to this request for proposal shall be referred to the following individuals: Carlos E. Garcia, Director of Finance or Annette DeLara, Office of Director of Finance (305) 579-6350 NUMBER OF COPIES: 10 Proposals are to be marked PROPOSALS FOR FINANCIAL ADVISOR IV. SCOPE OF SERVICES The firm shall be responsible for performing or for assisting City staff and/or bond counsel in completing the following tasks: A. REVIEW AND EVALUATION OF FINANCIAL CONDITION, POLICIES AND PLANS: Review the City's overall financial condition, legal requirements, and policies, with particular emphasis on the financing of capital improvements and the issuance and administration of debt. The firm shall make recommendations, as appropriate, which would enhance the marketability and rating of future bond issues, including desirable legislative amendments. Review of the City's plans for financing capital improvements as a component of the City's Comprehensive Plan and the 6-Year Capital Improvement Program. Evaluate, and if appropriate, recommend modifi- cations in staff's preliminary parameters for timing and size of issue, average net interest costs, anticipated maturity schedule, annual debt service requirements and financing requirements. Advise staff of pertinent market factors and expected trends in interest rates and yields for different maturity dates. Review with City staff the advantages, disadvantages and requirements of financing structures used by similar issuers, including taxable bonds and other approaches. _ 2 _ 89-333 • a Perform other such duties as necessary, including attendance and presentation before the Mayor and members of the City Commission approximately four times a year to discuss revenue projections, strategies for maintaining/improving credit- worthiness and other related financial matters. Provide recommendations on the timing, structure, technical features and amount of proposed bond issues. B. ASSIST IN DEVELOPING A FINANCIAL PLAN The firm shall help develop a plan of financing in consultation with City officials, auditor, and municipal bond counsel. The plan will be based on the City's capital improvement program studies pertaining to revenue projections, and the existing corporate, financial and legal structure of the City. Help establish evaluations of financing alternatives other than municipal bonds. Review the City's revenue projections and provide comment. C. ASSIST IN DEALINGS WITH RATING AGENCIES Assist staff in preparing presentations to the rating agencies necessary to analyze the financial soundness of the City's financing program, and discuss methods of maintaining and/or improving the City's rating with those individuals who determine the bond ratings. Attend meetings of the appropriate representa- tives of the City' s staff with the rating agency presentations. D. PREPARATION FOR BOND SALE Assist staff in establishing a timetable and a list of duties of all parties involved in the financing and develop a time schedule for the sale of bond issues, giving consideration to cash needs, expected market conditions and avail- ability of audited financial data. Evaluate bond covenants necessary to provide flexibility for the City and assure positive reception with rating services and investors. 98--333 -3- • E. Work with staff, City Counsel, Bond Counsel and other advisors to prepare reports and documents necessary to support the issuance of bonds and recommend appropriate technical financing features designed to enhance marketability, such as time and place of bond bids, good faith check, denomination and spread of coupons, payment and terms, and call provisions. Consult with and assist staff and Bond Counsel in the preparation of legal documentation necessary to support the bond issue. In cooperation with staff, evaluate the text of the Preliminary Official Statement describing the bonds, Notice of Sale, and other material information designed to provide analysts, investors and the rating services with appropriate disclosure of a material nature. Work with staff, City Counsel, Bond Counsel and other related parties to finalize the Official Statement. In cooperation with City staff, Bond Counsel, and other members of the financial team, lead the planning and distribution of the official statement. DEVELOPMENT OF THE MARKET AND BOND SALE Analyze market climate in the period immediately preceding the selected date for the bond sale. Determine the best method for marketing the bonds under expected market conditions existing at the time of the sale. Provide information to the City concerning the market climate, investors active in the municipal market during the sale period, and other similar issues scheduled for sale during such period. Conduct pre -sale information meetings for prospective underwriters and institutional investors in principal financial centers as approved by the City. Assist staff in providing trade publications with information as to the City's financing schedule and proposed bond sale dates. Assist staff in answering questions of potential investors and underwriters regarding the bond issue. - 4 - 0 V. Assist staff in developing a comprehensive list of underwriters, institutional investors and investment advisors. Upon receipt of the bids or proposals for the issue, review bids and recommend to the issuer the best bid for acceptance, if any. Provide the City with a debt service schedule based upon the interest rates, etc., of the winning bid. GENERAL TERMS AND CONDITIONS A. B. C. PROPOSAL BINDING 60 DAYS Proposals shall remain binding sixty (60) calendar days after the date of closing. MINORITY COMPLIANCE The City has a minority participation goal of 17% Black, 17% Hispanic and 17% Women -Owned firms on all contracts. For additional information please contact the City's Minority Procurement Coordinator, Ms. Adrienne McBeth at 579-6383. AWARD The contract shall be awarded to the most responsible and responsive firm complying with all provisions of the request for proposal provided the price is reasonable, and it is in the best interest of the City to accept the proposal. The City reserves the right to waive any informality in proposals received whenever such action is in the best interests of the City. The City has the right to reject the proposal of a firm who, investigation reveals, is not in a position to perform the contract. In determining responsibility, the following other qualifications, in addition to price, will be considered by the City. a) b) c) d) The ability, capacity and skill of the firm to perform all aspects of the contract. The character, integrity, reputation, judgment, experience and efficiency of the firm. The quality of performance on previous contracts. The previous compliance by the firm with laws and ordinances pertinent to the contract. 98-333 - 5 - EVALUATION CRITERIA The following information will provide the basis for the evaluation of proposals. Experience: Please provide a list of all current contracts held as financial advisor by client and term of contract. Scope of Services: Provide a listing of scope of services routinely provided to clients. The selected financial advisor will not participate in an underwriting capacity on any City of Miami financings for the duration of the contract. Proposed Fees: Provide a proposed schedule of fees and charges by type of service - Term: Competitive Sale, General Obligation Bond $/Bond Negotiated Sale, Revenue Bonds S/Bond Competitive Sale, Revenue Bonds $/Bond Negotiated Sale, Refunding Bonds $/Bond Competitive Sale, Certificates of Participation $/Bond In addition list any other fees or charges for services. The term of this contract will be for a two (2) year period from the date of execution, which may be extended for two additional one (1) year periods at the option of the City. Each party shall have the right to terminate this contract at any time upon thirty days written notice. Staff: Please provide the resumes of individuals to be assigned to this contract. Minority Participation: Describe the proposers compliance with the City's minority participation goals as described as described herein. - 6 - ATTA�"®" Nowerd Clicken Jsffrey Watson W33.1 To CO" OF MAW FLORIDA INTERIOPTIC[ MIWORANDUM Honorable Mayor and Members of the City Commission FROM Cesar H. Odio City Manager RECOMMENDATION: 75 OATS ...4a 3 rtlE $USACT RFP for Financial Advisory Services REFERENCES Meeting of April 14, 1988 ENCLOSURE$ It is respectfully recommended that the attached Resolution, authorizing and instructing the Director of Finance to advertise and distribute a Request for Proposals (RFP) for Financial Advisory Services, for a two-year period, be approved. BACKGROUND: The City' s existing contract with James J . Lowrey for financial advisory services expires on April 1, 1988. The Department of Finance has prepared the attached request for proposals for financial advisory services to solicit proposals for the Nr•uv i b i uri ui thtse services. By way of this Resolution, a Committee will be appointed to review and evaluate proposals and make recommendations to the City Manager. 'Subsequently, the City Manager will make a recommendation to the City Commission. cc: Law Department 7 5 -/ 886"333