HomeMy WebLinkAboutR-87-0340J-87-364
4/9/87 711
RESOLUTION NO. 137-340
A RESOLUTION SELECTING AND APPOINTING THE
MANAGEMENT TEAM HEADED BY BEAR, STEARNS &
CO., INC., AS SENIOR UNDERWRITERS, AND THE
MANAGEMENT TEAM HEADED BY SHEARSON LEHMAN
BROTHERS, INC., AS CO -MANAGERS, FOR THE CITY
OF MIAMI GENERAL OBLIGATION REFUNDING BONDS,
SERIES 1987A, AND AUTHORIZING THE CITY
MANAGER TO NEGOTIATE A CONTRACT FOR SAID
UNDERWRITING SERVICES.
WHEREAS, the City of Miami, Florida has outstanding on
the date hereof certain series of City of Miami General
Obligation Bonds; and
WHEREAS, it is in the best financial interests of the
City to refund certain series of the outstanding general
obligation bonds by issuing General Obligation Refunding Bonds,
Series 1987, at a lower interest rate; and
WHEREAS, the economic savings to the City from the
proposed refinancing are projected to exceed $1 million in
present value savings; and
WHEREAS, the City's financial advisors, James J. Lowrey
b Company prepared and distributed a Request for Proposals for
Underwriting Services; and
WHEREAS, the City Commission approved a motion
ratifying the Request for Proposals, the membership of the Review
Committee, the Selection Criteria, and the ranking process; and
WHEREAS, twenty-two responses were received for review
by the Review Committee; and
WHEREAS, the Review Committee reviewed all of the
proposals and ranked the top five proposals; and
WHEREAS, it is to the City's financial benefit to take
advantage of the currently favorable interest rates available in
the tax exempt capital market;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. This Resolution is adopted pursuant to the
Charter of the City and Chapter 1661, Section 218.385 of the
Florida Statutes, and other applicable provisions of the law.
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APR A 181
.,,
Section 2. It is hereby ascertained, determined, and
declared that is in the best financial interests of the City to
accept the proposal of the management team headed by Bear Stearns
& Co., Inc., to serve as Senior Underwriters, and the management
team headed by Shearson, Lehman Brothers, Inc., as Co -Managers,
for the City of Miami for the issuance of General Obligation
Refunding Bonds to advance refund certain outstanding City of
Miami General Obligation Bonds.
Section 3. The City Manager is hereby authorized to
negotiate a contract for underwriting services provided for this
transaction.
Section 4. This Resolution shall be effective
immediately upon its adoption.
PASSED AND ADOPTED this 9th KdayApril 87.
XAVIER SUAREZ
M A Y 0 R
AT T ES1 :
MATEY HIRAI, CITY CLERK
APPROVED BY:
/(? C----� �- 'g-, am"t-- -
ROBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
APPROVY'D S TO FORM
ANgq//CO ECTNESS:
LUCIA A. DOU ERTY,
CITY ATTOR Y
BUDGET REVIEW:
Al-
MANOHAR Si NA, DIRECTOR
MANAGEM & BUDGET DEPT.
FINANCE REVIEW:
ti
CARLOS . GARCIA, DIRECTOR
DEPART NT OF FINANCE
87-34 ,..
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO. Honorable Mayor and Members DATE: Mii7 9 107
FILE:
of the City Commission
FROM: Cesar H. Odio
City Manager
RECOMMENDATION:
t.
SUBJECT: Resolution for Selection
of Senior Underwriter for
G.O. Refunding Bonds
REFERENCES:C i ty Commission Meeting
of April 9, 1987
ENCLOSURES:
It is respectfully recommended that the attached resolution
selecting and appointing a Senior Underwriter for the proposed
City of Miami General Obligation Refunding Bond issue, refunding
certain outstanding general obligation bonds and authorizing the
City Manager to negotiate a contract for said underwriting
services, be approved.
BACKGROUND:
At the City Commission meeting of March 17, 1987 the Commission
passed a motion affirming the City Manager's appointments to the
Review Committee, the selection criteria, and the ranking
process.
The Review Committee met on March 26, 1587 to review twenty-two
proposals submitted. The members of the Committee present were:
Mr. Arthur Hill - Private Sector
Mr. Amadeo Lopez -Castro - Private Sector
Mr. Wally Lee - Executive Assistant to the City Manager
Mr. Carlos Garcia - Director of Finance
Mr. John Blaisdell - MSEA Director
Mr. Joseph E. Pogue - Private Sector, was not present.
Evaluation Criteria, as affirmed by the Commission, with the
respective weighted values, were as follows:
1. Ideas on the structure of the financing and sale of
the bonds and the proposed management fees and
expenses - 60%
2. General Obligation Bond Refundings completed in the
past 12 months - 5%
3. Prior general obligation bond refundings in the State
of Florida - 5%
Honorable Mayor and Members of
The City Commission
4. Structure of the firm - 100%
5. Names and resumes' of personnel to be assigned to the
project - lOb
6. Compliance with the City's minority participation
requirements - 10%
The Review Committee ranked to top five proposals in the following
order:
1. Prudential Bache and Metro Equities Corporation
2. Tied Ranking:
Bear Stearns Shearson Lehman Brothers;
and Grigsby Branford & Company,
Daniels & Bell Inc., and
AIBC
3. First Boston and United Daniels Securities, Inc.
4. Citicorp Investment Bank
The purpose of this transaction is to allow the City to take
advantage of the currently favorable interest rates available in
the tax exempt capital markets. It is estimated that present
value savings to City of Miami residents will exceed $1.3 million.
Passage of the attached resolution will appoint the Senior
Managing Underwriter and will authorize the City Manager to
negotiate a contract for underwriting services.
cc: Law Department