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HomeMy WebLinkAboutItem #28 - Discussion Itemt-P Honorable Mayor and Members of the City Commission Howard V. Gary �I City anaaer October 3, 1983 Selection on Bond Counsel A very critical element in the sale of municipal securities (fonds) is the credibility and experience of Bond Counsel. Bond Counsel provides legal guidance on matters of disclosure, comaliance with local, state and federal regulations as well as being a resource on any other legal questions relative to the issue. Each issue requires that Bond Counsel provide a certified opinion as to the legality of that issue. Consis- tency of interpretation, form and procedure is a strong advantage. Acceptability of Bond Counsel by the market place is mandatory. It is not uncommon for a local jurisdiction to utilize the services of cc -counsel or joint counsel or some other equally acceptable relationship as a Bond Counsel for a bond issue. This permits qualified local law firms to participate in the bonding process. They can perform local research and provide insiaht into issues that enhance the marketability of the bonds. Additionally, it does permit a portion of bond counsel fee to remain in the local area. The lava firm of Brown, ,flood, Ivey, Petty and Mitchell has served as the Citv's Bond Counsel for a number of years. This firm has considerable knowledae of the City and has served the City well. Brown -good is highly regarded in the New York market- place and their participation as Bond Counsel provides credi- bility of the hia,nest magnitude. Firms can not serve as sole Bond Counsel unless they are listed in the Bond 3u•,er Diractory of Municinal Bond Cealers of the United States, cCTrlC'n_" '"?�=rreC tJ as the "Red oOk". CXeVer, rms no_ 1_stew in the "..-d Boc. " may oartici =te as co -counsel o ,oint counsel alt:1 a __sted fi_--l. . After ser''ing satis_actoril: capacl"'' for two issues, they are then zuallfied to Jecome 11'atec in the "_P:3 d Book" and to nand -le issues wi : -cut a listed cc - counsel. D ISCUSS%oN--23—�3.i t ::cncrable >'avor and Members of t e Cit • Commission Pace 2 Miami could utilize local law firms as co -counsel on bond issues. Generally, it is expected that the Cite will be selling S20 M to :30 M annually in G.O. Bonds. Brown -Wood would remain the rimne and continuing bond counsel. Local fir:ns would be added as co -counsel for. each $10 :d unit of bonds sold. For a $20 M to S30 M issue, Brown -wood would be the prime Bond Counsel and two local firms would serve as co -counsel. The criteria for the selection of local Bond Counsel should i^clude the following: a. Assurance that a senior partner with expertise in bond financing will be responsible for the legal work and will be accessible to the City to answer inquiries and discuss the progress of the issue from time to time. b. Evidence of depth of legal talent with capacity to handle bond work. C. Expertise in the field of federal income tax, project funding or other specialized areas. d. have a principal office within the City of Miami. e. Provide assurance of adequate minority partici- pation in the firm. It is suggested that the City will place notice in the Miami Re- view, the local legal newspaper, inviting firms who are interested to submit their qualifications to a special co7mittee appointed by the Cit_✓ Manager. After review of the qualifications, the City :•'.anacer will prepare a list of firms best qualified in accordance with the above criteria. Qualified local firms will be prioritized based on a lottery system and utilized on a rctatina basis with those at the beginning of the list being given the first opportunity to participate. n R7 3 .ai'_1 be crepared and placed on the City Cc:rmission agenda .:or ccnsidaraticn. __� -w�x�:'f.-w•-n .a ,;tea..::.: :,. Reauest for Proposal Bond Co -Counsel INTRODUCTION The City of Miami wishes to'utilize the services of law firms having principle offices in the Miami area to assist in matters relating to the sale of general obligation bonds and other debt instruments. Further, it is the desire of the City to provide an opportunity for interested law firms to submit their qualifications for review. Those firms found best qualified in accordance with predetermined criteria, will be prioritized based on a lottery system and will be utilized on a rotating basis. Local firms will serve as co -counsel with the law firm of Brown, Wood, Ivey, Petty and Mitchell. QUALIFICATIONS a. assurance that a senior partner with expertise in bond financing will be responsible for the legal work and will be accessible to the City to answer inquiries and discuss the progress of the issue from time to time. b. Evidence of depth of legal talent with capacity to handle bond work. C. Expertise in the field of federal income tax, project funding or other specialized areas. d. Have a orincioal office in the Miami area. e. Provide assurance of adequate minority participation in the firm. SUBMISSION OF DATA The following data should be provided: 1. Resumes of senior partners of principals who will be servicinc the C'_tv account. 2. resumes of associates or other a:filiates that may_, be servicina the City account. 3. Resumes of other principals in the 51rm, that may be servicinc the Cite account. 4. List of specific bond issues within the last ten years that the firm or a principal has been an active participant. Show the following data: a. Purnose of issue (housing bonds, general purpose construction, etc.) b. Type of issue (G.O., Revenue) C. Size d. Date sold e. Interest rate f. Governmental unit issuing. g. Role of firm or principal (counsel, co -counsel) 5. Submit data relating to the size of the law firm. Data should include: a. Number of principals, partners, associates, etc. b. Office location(s) C. Research capabilities d. Staff and clerical support 6. Statement and supporting documents related to areas of expertise. 7. Statement and supporting documents assuring minority participation. (reference City Commission Ordinance 9341)• METHOD OF SUBMISSION Qualifications should be submitted in five copies to: Carlos Garcia Director of Finance 3500 Pan American Drive Miami, Florida 33133 Envelope should be marked Co -Bond Counsel Qualifications. Qualifications should be submitted no later than December 1, 1983.