2003-25155 ResoRESOLUTION NO. 2003-25155
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER AND APPOINTING A POOL OF FIRMS PURSUANT
TO REQUEST FOR PROPOSALS NUMBER 13-02/03 FOR PROVIDING
BOND UNDERWRITING SERVICES TO THE CITY SUBJECT FURTHER
TO THE TERM AND CONDITIONS SET FORTH IN THIS RESOLUTION.
WHEREAS, the City is seeking the services of experienced and qualified
organizations to provide bond underwriting services to the City; and
WHEREAS, on November 13, 2002, the City issued Request for Proposals No. 13-
02/03 (the RFP) for providing the required services; and issued amendments thereto on
February 25, 2003; February 26, 2003; and February 28, 2003; and
WHEREAS, the City received eleven (11 ) responses to the RFP; and
WHEREAS, an Evaluation Committee appointed by the City Manager met on March
17, 2003, and voted to recommend to the City Manager that Bear Stearns & Co. Inc.; J.P.
Morgan Chase; Morgan Stanley Dean Witter; Raymond James & Associates, Inc.; RBC
Dain Rauscher; Salomon Smith Barney Inc.; Sun Trust Capital Markets; and UBS
PaineWebber, be appointed as a pool of underwriters to provide the required services
under the RFP to the City, for a three year term with two one-year renewals; and
WHEREAS, the City Manager after carefully reviewing the recommendation of the
Evaluation Committee, would prefer to include all eleven firms in the pool; and
WHEREAS, the addition of the remaining three firms will enhance the City's
opportunities to create a financing team that offers the best representation in all regions
and market segments including national, state and local retail as well as institutional
distribution resources which will provide the City a powerful platform to launch successful
financings.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
Bear Stearns & Co. Inc.; Estrada Hinojosa & Co.; First Southwest Company; J.P.
Morgan Chase; Morgan Stanley Dean Witter; Ramirez and Co., Inc; Raymond James
& Associates, Inc.; RBC Dain Rauscher; Salomon Smith Barney Inc.; Sun Trust Capital
Markets; and UBS PaineWebber are hereby appointed as a pool of underwriters to
provide the required services under the RFP to the City for a three year term with two
one-year renewals.
2. The City's Chief Financial Officer shall determine the number of underwriters and the
specific underwriting firms from the pool to be assigned to each bond financing
transaction of the City, after consultation with the City's Financial Advisor, taking into
consideration the size and complexity of the issue; the distribution requirements; and
the specific experience of the firms in the underwriting pool, as may be in the best
interest of the City.
3. Any of the firms in the underwriting pool that present an innovative or cost saving
financing concept to the City shall be appointed as Senior Manager for such
transaction in the event that the City implements such innovative or cost saving
financing concept.
PASSED and ADOPTED this 19th day of March, 2003
ATTEST:
CITY CLERK
& ~ EXGCI,JllON
JMG/PDW/RVD
T:~AGENDA\2003\MAR1903\REG\U N DERWRITERSRESO.DOC
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO APPOINT A POOL OF FIRMS
PURSUANT TO RFP 13-02/03 FOR UNDERWRITING SERVICES.
Issue:
Shall the Mayor and City Commission select a pool of firms to provide underwritincJ services to the City for I
la period of three years with two one-year renewals?
Item Suiiiii~ary/Recommendation:
Adopt the Resolution
Advisory Board Recommendation:
Financial inTormauon:
Source of Amount Account APProved
Funds: 1 Funds will be provided in each
Bond issue.
2
ept. Total
City Clerk's Office Legislative Tracking:
I John Ellis
Sign-Offs:
Depa~,r~ne.nt Director
.~~tant City Manager CitY Manager
AGENDA ITEM. ~' 7~'
OATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and Date: March 19, 2003
Members of the City Commission
Jorge M. Gonzalez
City Manager
A RESOLUTION'OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER AND APPOINTING A POOL OF FIRMS PURSUANT
TO REQUEST FOR PROPOSALS NUMBER 13-02103 FOR PROVIDING
BOND UNDERWRITING SERVICES TO THE CITY SUBJECT FURTHER
TO THE TERM AND CONDITIONS SET FORTH IN THIS RESOLUTION.
ADMINISTRATIVE RECOMMENDATION
Adopt the Resolution.
FUNDING AND AMOUNT
Funding is available from budget for Bond issuance costs for each debt issue.
ANALYSIS
On January 7, 1998, the Mayor and Commission appointed IBC Municipal Securities, Bear
Stearns & Co. Inc., J .P. Morgan, Morgan Stanley Dean Witter, Paine Webber Incorporated,
Prudential Securities Incorporated, Raymond James & Associates, Inc., William R. Hough
& Co. to a pool of firms providing underwriting services to the City of Miami Beach. These
firms have provided underwriting services to the City for debt issues listed below:
$30 Million General Obligation
$54.3 Million Water & Sewer Revenue
$52.1 Million Storm Water Revenue
$47.1 Million Gulf Breeze Loan
On November 13, 2002, the Mayor and City Commission adopted Resolution No. 2002-
25054, which authorized the Administration to issue a Request for Proposals (RFP) for
Underwriting Services. On February 5, 2003, DemandStar by Onvia issued seven-hundred
twenty-three (723) notices, which resulted in the receipt proposals from the following firms:
1. Bear Stearns
2. Estrada Hinojosa & Company
3. First Southwest Company
4. JP Morgan Chase
5. Morgan Stanley Dean Witter
6. Ramirez & Company Inc.
7. Raymond James & Associates Inc.
8. RBC Dain Rauscher
9. Salomon Smith Barney Inc.
10. SunTrust Capital Markets, Inc.
11. UBS PaineWebber
Letter to Commission No. 63-2003, appointed the following individuals to serve as
Evaluation Committee (the "Committee") members:
1. Jeryl (Deede) Weithorn, Chair - Budget Advisory Committee, and Independent CPA
2. Larry Herrup, Resident, Independent CPA and Former Chair- Budget Advisory
Committee
3. Georgina Echert, Assistant Finance Director
4. Jim Sutter, Internal Auditor
5. Marc Jacobson, Resident, member-Budget Advisory Committee
On March 17, 2003, the Committee convened and was provided with information relative to
the Cone of Silence, Government in the Sunshine Law, the Evaluation Criteria, and the
Scope of Services.
The Committee deliberated and evaluated each proposal on the evaluation criteria set forth
in the RFP, and scored and ranked the firms as follows:
Bear Stearns
JP Morgan Chase
Morgan Stanley Dean Witter
Raymond James & Associates Inc
RBC Dain Rauscher
Salomon Smith Barney Inc.
SunTrust Capital Markets
UBS PaineWebber
First Southwest Company
Ramirez and Co., Inc.
Estrada Hinojosa & Co.
The Committee recommended that the City Manager appoint a pool comprised of the top
eight ranked Underwriting firms for a three-year term, with two one year renewal options.
The Evaluation Committee based its recommendation on the following factors:
Experience, qualifications, and technical ability
Commitment to Florida municipal finance - experience serving
as senior book-running manager for Florida municipalities
Wei,qht
20%
20%
3. Distribution capabilities 20%
4. Demonstrated the ability to meet objectives outlined in Section II 20%
of the RFP (Scope of Services)
Accessibility, availability and professional qualifications of the
firm and individuals who would be assigned to the City
20%
The selected firms for underwriting services along with the City's financing team will be
expected to assist the City in evaluating financing options, developing financing structures
and underwriting new debt issues to meet the City's capital requirements and financial
goals.
After carefully reviewing the recommendation of the Evaluation Committee, I considered
the proposed pool of firms and would prefer to include all eleven firms in the pool. The
addition of the remaining three firms will enhance the City's opportunities to create a
financing team that offers the best representation in all regions and market segments
including national, state and local retail as well as institutional distribution resources which
will provide the City a powerful platform to launch successful financings.
BACKGROUND
Primary objectives in selecting the Underwriter(s) include:
· Combination of sales and underwriting capabilities that will allow the City to structure
debt transactions that are cost effective, and
· Banking capabilities to structure transactions that are beneficial and meet the financial
goals of the City.
The City Manager or his designee, after consultation with the Financial Advisor for the City,
will select the Senior Managing firm and other members of the financing team for each
issue, taking into consideration the size of the issue, the distribution requirements and/or
specific experience of firms. The City does not represent or guarantee that any amount of
financing will be completed. The City retains the ability, in its sole and absolute discretion,
to offer bonds or other financing instruments on a competitive sale basis or through loan
pools with out using these firms. The selected firms will be expected to work cooperatively
with the City's financing team and take direction from the City's Chief Financial Officer.
CONCLUSION
The Administration recommends that the Mayor and City Commission award underwriting
services agreements pursuant to Request for Proposals No. 13-02/03, to the following
firms:
Bear Stearns
Estrada Hinojosa & Co.
First Southwest Company
JP Morgan Chase
Morgan Stanley Dean Witter
Ramirez and Co., Inc.
Raymond James & Associates, Inc.
RBC Dain Rauscher
Salomon Smith Barney Inc.
SunTrust Capital Markets
UBS PaineWebber
T:~AGENDA~2003~nar1903~regular~UnderwritingServices,doc