2002-25054 Reso
RESOLUTION NO.
2002-25054
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO
ISSUE A REQUEST FOR PROPOSAL (RFP) FOR UNDERWRITING
SERVICES, FOR A THREE-YEAR PERIOD WITH TWO ONE-YEAR
RENEWAL OPTIONS.
WHEREAS, every two years the City issues a Request for Proposal (RFP) seeking
competitive pricing for underwriting services involving evaluating financial options,
developing financial structures and underwriting new debt issues to meet the City's capital
requirements and financial goals; and
WHEREAS, the City will select a pool of firms to serve as Underwriter(s) for the City
for a three-year period; and
WHEREAS, the Chief Financial Officer, 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; and
WHEREAS, the City does not represent or guarantee that any amount of financing
will be completed; and
WHEREAS, the City retains the ability, in its sole and absolute discretion, to offer
bonds or other financing instruments on a competitive sale basis orthrough loan pools with
out using these firms; and
WHEREAS, the issuance of the RFP will allow the City to move forward with the
selection of a firm(s) to provide underwriting services for a three-year period with two one-
year renewal options; and
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 approve the issuance of a Request for Proposal (RFP) for the provision of
underwriting services to the City of Miami Beach for a three-year period with two one-year
renewal options.
PASSED and ADOPTED this
November ,2002,
ATTEST:
~cS'~
r CITY CLERK
APPROVED AS TO
FORM a lANGUAGE
a fOR EXECUTION
~~\~2;OV
~
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
lQ
..........
Condensed Title:
To issue a Request for Proposal (RFP) for Underwriting services,
Issue:
Whether to authorize the issuance of a Request for Proposal (RFP) for Underwriting services.
Item Summa IRecommendation:
Scope of services includes assisting the City in evaluating financing options, developing financing
structures and underwriting new debt issues that meet the City's capital requirements, The combination
of sales and underwriting capabilities will allow the City to structure debt transactions that are cost effective.
Advisory Board Recommendation:
I N/A
Financial Information:
Amount to be expended:
The cost of these services is paid from bond proceeds
Source of
Funds:
l"~J
City Clerk's Office Legislative Tracking:
I
AGENDA ITEM
DATE
C7,I
//-/3-02-
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE Miami Beach, FLORIDA 3:3 139
www.ci.miami-beach.fl.us
COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commission
Date: November 13, 2002
From:
Jorge M. Gonzalez \ .
City Manager J ~
Subject:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO
ISSUE A REQUEST FOR PROPOSAL (RFP) FOR UNDERWRITING
SERVICES, FOR A THREE-YEAR PERIOD WITH TWO ONE-YEAR
RENEWAL OPTIONS.
ADMINISTRATIVE RECOMMENDATION:
Adopt the Resolution,
ANALYSIS
On January 7,1998, the Mayor and Commission appointed IBC Municipal Securities, Bear
Stearns & Co, Inc" J,P, Morgan, Morgan Stanley Dean Witter, PaineWebber 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
The City will select a pool of firms to serve as Underwriter(s) for the City for a three-year
period, The Chief Financial Officer, atter 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,
SCOPE OF SERVICES
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, The detailed scope of services and evaluation criteria is attached,
Funding is available from budget for Bond issuance costs for each debt issue,
CONCLUSION
The issuance of the RFP will allow the City to move forward with the selection of a pool of
firms to provide underwriting service for the ensuing three-year period,
JMG: PDW: rvd
Scope of Services
The selected firms 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 capital requirements of the City,
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 Chief Financial Officer, 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 without 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,
The Evaluation Committee shall base its recommendation on the following factors:
Factors:
1, Experience, qualifications, and technical ability
WeiQht
20%
2, Commitment to Florida municipal finance - experience serving
as senior book-running manager for Florida municipalities
20%
3, Distribution capabilities
4, Demonstrated the ability to meet objectives outlined in Section II
of the RFP (Scope of Services)
20%
20%
5, Accessibility, availability and professional qualifications of the
firm and individuals who would be assigned to the City
20%