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HomeMy WebLinkAboutR-86-0560e" , J-86-601 RESOLUTION No. St_)-560 A RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER TO SELECT, NEGOTIATE AND EXECUTE AN AGREEMENT WITH A MANAGING UNDERWRITER WITH RESPECT TO THE PROPOSED OFFERING, NOT TO EXCEED $20,000,000, CERTIFICATES OF PARTICIPATION IN A LEASE PURCHASE AGREEMENT, PURSUANT TO WHICH THE CITY OF MIAMI, AS LESSEE, WILL FINANCE THE ACQUISITION OF CERTAIN VEHICLES AND EQUIPMENT. WHEREAS, the City has various heavy equipment and motor vehicle needs for the provision of municipal services for City Residents: and; WHEREAS, the most economical means of providing the funds for the financing of these equipment needs is through a tax-exempt financing; and F WHEREAS, tax-exempt financing for this type of equipment program j: will most likely not be available after the enactment of Federal Tax Reform; and WHEREAS, the aforeseen effective date for the provisions of Federal Tax Reform is September 1, 1986; and WHEREAS, due to the aforementioned time constraints this transaction must be completed and closed on or before August 31, 1986; and WHEREAS, the City's Financial Advisor, James J. Lowrey & Co. issued a Request for Proposals dated June 19, 1986 soliciting responses from qualified Investment Banking firms for the provision of underwriting services for the sale of Certificates of Participation for the financing of a tax-exempt leasing program to provide for the City's equipment needs, and WHEREAS, the Request for Proposals delineated six categories of information summarized as follows. 1. Ideas on structing of program, proposed management fees and expenses. I'? 2. Firms prior experience in tax-exempt leasing programs (past 2 years). 3. Structure of firm and capital base. 4. Names and resumes of persons associated with the a transaction. CITY COMMISS103 MEETING OF LJUL 10 1966 RESOLUTION No. EA 5. Response and compliance with the City's minority requirements. 6. Additional qualifications. WHEREAS, the City Manager will review the proposal submissions and select the proposal which will provide the required underwriting services at the lowest management fee and lowest cost to the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized and directed to select, negotiate and execute an Agreement with a managing underwriter with respect to the proposed offering of not to exceed $20,000,000 Certificates of Participation in a lease purchase Agreement for the financing of the acquisition of certain vehicles and equipment. PASSED AND ADOPTED this 10th day of JULY , 1986. XAVIER L.C,54AREZ MAYOR ATTERT-, MATW HIRAI, CITY CLERK PREPARED AND APPROVED BY: Vkt G. M RIAM 14AER ASSISTANT CITY ATTORNEY APPROVED AfSAO LUCIA A. DOUGHER CITY ATTORNEY M AND CORRECTNESS: 84; 15 .j c - s�rs�api TO, Honorable Mayor and Members of the City Commission FROM: Cesar H. Odio City Manager k, CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM DATE: June 30, 1986 FILE: SUBJECT: Selection of Underwriter REFERENCES: For City Commission ENCLOSURES: Meeting of July 10, 1986 It is recommended that the attached resolution authorizing and directing the City Manager to select, negotiate and execute an Agreement with a managing underwriter with respect to the proposed offering not to exceed $20,000,000 Certificates of Participation in a lease purchase agreement, pursuant to which the City of Miami, as lessee, will finance the acquisition of certain vehicles and equipment be approved. Attached is a Resolution authorizing and directing the City Manager to select and negotiate with a managing underwriter for the provision of underwriting services in conjunction with a Certificates of Participation program, not to exceed $20,000,000, for certain City vehicles and heavy equipment financing. The funds provided by this transaction will be used for the provision of General Services Administration equipment needs for various heavy equipment and other vehicles. The actual expenditures for equipment will still be controlled by the City Commission through the annual budget process. Due to the probable enactment of Federal Tax Reform with an effective date of September 1, 1986, the City must close this transaction on or before August 31, 1986. Given this extremely accelerated time frame, the City's Financial Advisor, James J. Lowrey and Co., issued a Request for Proposals (RFP) dated June 19, 1986. The RFP delineated six categories of information as summarized below: 1. Ideas on structing of program, proposed management fees and expenses. �I� Honorable Mayor and Members of the City Commission Page 2 2. Firms prior experience in tax—exempt leasing programs (past 2 years). 3. Structure of firm and capital base. 4. Names and resumes of persons associated with the transaction. 5. Response and compliance with the City's minority requirements. 6. Additional qualifications. The approval of the attached Resolution will authorize the City Manager to select the underwriter's proposal which will provide the services required at the lowest cost to the City.