Loading...
HomeMy WebLinkAboutSummary Form�,. csp Gf C0.Ft��•�. Date: 9/7/2009 AGENDA ITEM SUMMARY FORM FILE ID: Jam,` © 0 q g Requesting Department: Commission Meeting Date: 9/24/2009 District Impacted: Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other RE.2 Law Department Matter ID No. Subject: Termination of an Agreement with and Rescission of an Award from JP Morgan for Municipal Bond Underwriting Services. Purpose of Item: It is respectfully recommended that the City Commission accept the recommendation of the City Manager to terminate for convenience per section 1.83, B, and 2.14, B, of the Request for Qualification (RFQ) solicitation document and section 14 of the professional services agreement (PSA) and; therefore, rescind the award from JP Morgan Securities (JP Morgan), as a Senior Manager/Co-Senior Manager of the Municipal Bond Underwriting team and award to RBC Capital Markets Corporation (RBC), the next highest ranked firm under the category of Senior Manager/Co- Senior Manager. As a result, the City Manager further recommends to remove RBC as one of the co - managers and award to Morgan Keegan & Company, Inc. (Morgan Keegan), the next highest ranked firm under the category of Co -Manager. The City Manager is also requesting authorization from the City Commission to negotiate and to execute a Professional Services Agreement, in substantially the form attached, with RBC and Morgan Keegan for the remaining term of the contract effective through March 30, 2011, with the options to renew for three (3) additional one year periods. Background Information: (See attached) Budget Impact Analysis NO Is this item related to revenue? YES Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: CIP Project No: NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: Final Approvals (SIGN AND DATE1 CIP Budget If using or receiving capital funds Grants e_t2n. / Risk Managemeig Purchasi g G- "7-1S ept. Director Chief _City Manager Termination of Agreement with and Rescission of an Award from JP Morgan for Municipal Bond Underwriting Services (continued). On March 26, 2009, the City Commission adopted Resolution No. R-09-0161 and accepted the findings and recommendation of the Evaluation Committee and City Manager that the two top- ranked and most qualified firms to provide Municipal Bond Underwriting Services in rank order, on a rotational basis, for Senior Manager/Co-Senior Manager was (1) Merrill Lynch and (2) JP Morgan; and, the three top-ranked and most qualified firms to constantly serve as Co -Managers were (1) RBC (2) Raymond James, and (3) Goldman Sachs on any given bond transactions. The City Commission Resolution further authorized the City Manager to negotiate and execute Professional Services Agreements (PSA) in substantially the form(s) attached, on an as -needed basis, for a base term of two (2) years with the option to renew for three additional one (1) year periods; and should negotiations fail with any of the above mentioned firms, to authorize the City Manager to negotiate with the next highest ranked firm(s) until a contract has been successfully negotiated. All agreements were successfully negotiated and executed with all of the recommended top-ranked firms. Shortly thereafter, per the RFQ requirements of rotating Senior and Co -Senior Managers between bond transactions, JP Morgan was selected to serve as the Senior Manager on the City's $37.5 Million Series 2009 Taxable Pension Bonds (the "Series 2009 Bonds"). The Series 2009 Bonds were issued to refinance and restructure certain Series 2006 taxable variable bonds which included a termination payment on an interest rate swap agreement that had been executed to synthetically fix the interest rate on the Series 2006 bonds. The City went to market on July 8th and 9th 2009 to sell the Series 2009 Bonds. As a result of the execution of that transaction and pursuant to section 1.83, B and 2.14, B, of the RFQ and section 14 of the PSA, the City Manager has determined that it is within the City's sole discretion and in the best interests of the City to terminate the designation of JP Morgan as Senior/Co-Senior Manager and to terminate the PSA with JP Morgan.