2017-29761 Reso RESOLUTION NO. 2017-29761
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER AND APPROVING THE SELECTION OF THE
FOLLOWING INVESTMENT BANKING FIRMS TO PROVIDE
UNDERWRITING SERVICES FOR THE STORMWATER REVENUE BONDS
THE CITY ANTICIPATES WILL BE ISSUED IN 2017, NAMELY CITIGROUP,
AS SENIOR MANAGER; WELLS FARGO SECURITIES, INC., AS CO-
MANAGER; AND ESTRADA HINOJOSA & CO., AS CO-MANAGER; AND
FURTHER APPROVING THE SELECTION OF THE FOLLOWING
INVESTMENT BANKING FIRMS TO PROVIDE UNDERWRITING SERVICES
FOR THE WATER AND SEWER REVENUE AND REFUNDING BONDS THE
CITY ANTICIPATES WILL BE ISSUED IN 2017, NAMELY RAYMOND
JAMES & ASSOCIATES, AS SENIOR MANAGER; STIFEL NICOLAUS, AS
CO-MANAGER; AND LOOP CAPITAL MARKETS, AS CO-MANAGER.
WHEREAS, on January 27, 2010, the City issued RFP No. 15-09/10 for Underwriter
Services for a Five Year Period, with five (5) one-year renewals, to select a pool of investment
banking firms to provide Underwriter Services for the issuance of various long-term municipal
bonds; and
WHEREAS, on April 14, 2010, the Mayor and City Commission accepted the City
Manager's recommendation to create a pool of 15 firms for underwriting services; and
WHEREAS, the process to select firms to serve as a senior manager or co-manager for
a particular issue involves a review of work previously assigned to the various firms during the
term of the pool, experience in and commitment to Florida municipal finance, the capability of a
firm to senior manage complex credit structures, the size of the bond issue to be sold, and the
various markets that the firm has access to for marketing and distribution; and
WHEREAS, after considering the foregoing factors, and consultation with the City's
Chief Financial Officer and its Financial Advisor RBC Capital Markets, the City Manager has
recommended the selection of underwriters for the bonds the City anticipates will be issued in
2017, as set forth more fully above and in the Commission Memorandum accompanying this
Resolution.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami Beach, Florida hereby accept the recommendation of the City
Manager and approve the selection of the following investment banking firms to provide
underwriting services for the Stormwater Revenue Bonds the City anticipates will be issued in
2017, namely Citigroup, as Senior Manager; Wells Fargo Securities, Inc., as Co-Manager; and
Estrada Hinojosa & Co., as Co-Manager; and further approve the selection of the following
investment banking firms to provide underwriting services for the Water and Sewer Revenue
and Refunding Bonds the City anticipates will be issued in 2017, namely Raymond James &
Associates, as Senior Manager; Stifel Nicolaus, as Co-Manager; and Loop Capital Markets, as
Co-Manager.
PASSED AND ADOPTED this / day of March, 2017.
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City Attorney ow Date
Resolutions -C7 G
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 1, 2017
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER AND APPROVING THE SELECTION OF THE FOLLOWING
INVESTMENT BANKING FIRMS TO PROVIDE UNDERWRITING SERVICES
FOR THE STORMWATER REVENUE BONDS THE CITY ANTICIPATES WILL BE
ISSUED IN 2017, NAMELY CITIGROUP,AS SENIOR MANAGER; WELLS FARGO
SECURITIES, INC., AS CO-MANAGER; AND ESTRADA HINOJOSA & CO., AS
CO-MANAGER; AND FURTHER APPROVING THE SELECTION OF THE
FOLLOWING INVESTMENT BANKING FIRMS TO PROVIDE UNDERWRITING
SERVICES FOR THE WATER AND SEWER REVENUE AND REFUNDING
BONDS THE CITYANTICIPATES WILL BE ISSUED IN 2017, NAMELY RAYMOND
JAMES & ASSOCIATES, AS SENIOR MANAGER; STIFEL NICOLAUS, AS CO-
MANAGER;AND LOOP CAPITAL MARKETS,AS CO-MANAGER.
RECOMMENDATION
Approve the resolution.
ANALYSIS
On December 9, 2009, the Administration recommended that the Mayor and City Commission
authorize the issuance of a Request for Proposals (RFP)to select a pool of investment banking
firms to provide Underwriter Services for the issuance of various long-term municipal bonds.
RFP No. 15-09/10 for Underwriter Services for a Five Year Period, with five one year renewals
was issued on January 27, 2010, with an opening date of February 24, 2010. The Mayor and
City Commission accepted the City Manager's recommendation to create a pool of 15 firms for
underwriting services.
The selected firms participate in the bond issues by assisting the City, its Chief Financial Officer
and its Financial Advisor, Julie Santamaria RBC Capital Markets, with development of financing
structures, preparation of preliminary and final official statements, bond resolutions, and other
documentation as may be required. The underwriters price, market and sell the bonds to
investors in municipal securities.
Additionally, firms appointed as the senior managing underwriter are required to provide the
Page 332 of 1025
services listed below throughout the proposed engagement. Co-managing underwriters provide
assistance as requested and support in the marketing, distribution and underwriting of the
assigned transactions. The City, at its sole discretion, may select one or more firms to serve as
senior manager or co-manager from the underwriting team for each of its bond financings. The
City reserves the right to assign less than all of the members of the underwriting pool for a
particular financing, and reserves the right to remove any underwriter from participation in the
underwriting syndicate if the underwriter and the City are unable to agree on any provision of the
bond purchase contract. All fees are contingent upon the issuance of the proposed bonds.
The required services include, but are not limited to, the following:
1. Participate in drafting of all bond documents, including the Official Statement.
2. Assist in preparation and discussions with rating agencies and bond insurers, if requested.
3. Make recommendations for the proposed financing, including, but not limited to, the timing
of the sale, the overall sales approach, the structure of the bonds, the call provisions, and
the use of credit enhancement.
4. Lead the underwriting team in marketing and distributing the bonds to both retail and
institutional investors.
5. Underwrite the financing based upon terms and conditions agreed to by both the City,
financial advisor, and the underwriters in the Bond Purchase Agreement.
6. Assist with the closing of the financing, including reviewing all closing documents and
providing a post-financing report to the City which highlights the key characteristics of the
financing.
The process to select firms to serve as a senior or co-manager for a particular issue involves a
review of work previously assigned to the various firms during the term of the pool, experience
in and commitment to Florida municipal finance, the capability of a firm to senior manage
complex credit structures, the size of the bond issue to be sold, and the various markets that the
firm has access to for marketing and distribution. A firm's response to other business requests,
such as the City's Line of Credit, and resulting commitment to the City is also considered. The
list of firms is recommended by the City Manager following consultation with the City's Chief
Financial Officer and Financial Advisor. Since the time that the 15 firms were originally selected
for the underwriting pool, three firms no longer have public finance representatives in Florida
and one firm has withdrawn.
The City anticipates the issuance of at least two bond financings in 2017, which consist of the
following:
1 ) Stormwater Bonds to provide approximately $100 million in proceeds for
stormwater projects
2 ) Water and Sewer Revenue and Refunding Bonds to provide approximately$50
million in proceeds for water and sewer projects and refinance approximately $31
million in Series 2000 Water and Sewer Bonds for debt service savings
The firms recommended for the Series 2017 financings are as follows:
Stormwater Revenue Bonds
Page 333 of 1025
Senior Manager - Citigroup
Co-Manager - Wells Fargo Securities, Inc.
Co-Manager - Estrada Hinojosa & Co.
Water and Sewer Revenue and Refunding Bonds
Senior Manager - Raymond James &Associates
Co-Manager - Stifel Nicolaus
Co-Manager - Loop Capital Markets
A list of the underwriter's previous transactions with the City during the term of the pool and the
resulting total participation in the City's bond financings based on this recommendation are
provided on attachment A.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida approve the City Manager's recommendation of underwriters for the Miami
Beach Stormwater Revenue Bonds and Water and Sewer Revenue and Refunding Bonds.
KEY INTENDED OUTCOMES SUPPORTED
Ensure Expenditure Trends Are Sustainable Over The Long Term
FINANCIAL INFORMATION
NA- Underwriters are compensated from bond proceeds.
Legislative Tracking
Finance
ATTACHMENTS:
Description
D Attachment A
D Reso
Page 334 of 1025
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