RESOLUTION 92-20561 RESOLUTION NO. 92-20561
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
EMPLOYMENT OF RAYMOND JAMES AND ASSOCIATES,
INC. AS FINANCIAL ADVISOR TO THE CITY ON A BOND
REFUNDING TRANSACTION COVERING THE $25,115,000
GENERAL OBLIGATION REFUNDING BONDS,SERIES 1986,
THE $37,395,000 GENERAL OBLIGATION REFUNDING
BONDS, SERIES 1987 AND THE $3,000,000 GENERAL
OBLIGATION BONDS, SERIES 1987..
Whereas, the City of Miami Beach desires to refund a portion of its general obligation
bonded debt to achieve savings, and:
Whereas, the appointment of a Financial Advisor is necessary for such a transaction to be
undertaken, and:
NOW THEREFOR BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, That the firm of Raymond James and Associates, Inc. be
appointed as Financial Advisor to the City in the refunding of its $25,115,000 General
Obligation Refunding Bonds, Series 1986, its $37,395,000 General Obligation Refunding
Bonds, Series 1987 and its $3,000,000 General Obligation Bonds, Series 1987.
Passed and adopted this 22nd day of July , 1992.
Mayor
Attest:
ORM APPROVED
/aertate( . 04-9(76yf LEGAL DEPT.oir
faietj
Cit Clerk
City By
7/57/2 Date
'
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. zpeci_ciz,
DATE: July 22 , 1992
TO: Mayor Seymour Gelber and
Members of the City Commission
FROM: Roger M. Carttgile
City Manager
SUBJECT: Selection of a Financial Advisory firm to serve the City on the refunding of
its General Obligation Bonded Debt as per RFP 75-91/92
Administration Recommendation
The Administration recommends that the City Commission appoint the firm of Raymond
James & Associates, Inc. as Financial Advisor in the refunding of the City's General
Obligation Bonds. Should the services of this firm be satisfactory to the City, the
Administration may request that the City Commission extend the engagement of Raymond
James & Associates to serve as Financial Advisor for a specific period of time.
Background
The Finance Committee of the City Commission asked that the Administration investigate
the potential of savings that could be achieved in the refinancing of the general obligation
bonded debt of the City. At the time of the request, no savings could be achieved. However,
in anticipation of further interest rate reductions, which have now occurred, a RFP for
Financial Advisory Services for the refunding of the $25,115,000 General Obligation
Refunding Bonds, Series 1986, the $37,395,000 General Obligation Refunding Bonds, Series
1987 and the $3,000,000 General Obligation Bonds, Series 1987 was issued. The financing
team will include administrative personnel, a member of the City Attorney's Office, special
Bond Counsel for the City (will need to be appointed by the City Attorney), Financial
Advisor for the City, a counsel selected by the investment bankers (underwriter's counsel),
and the Investment Bankers. All of the fees in the transaction will be contingent upon the
sale of the bonds. The anticipated size of the new issue is $55,000,000.
The role of the Financial Advisor in the transaction is to assist City staff in developing the
structure of the maturity schedule of the bonds to be issued. Additionally, the Financial
Advisor will be the City's contact with the bond insurance companies. Also, the most
important function that the Financial Advisor performs is to insure that the City receives
the best interest rates and lowest fees from the underwriting team.
The "RFP" was issued on April 8, 1992, with an opening date of May 7, 1992. A total of
thirty-nine sets of specifications were mailed and the City received nine responses including
three no bid responses.
114
AGENDA_Ral4
ITEM
DATE
2 -
i
Award of RFP 75-91/92 Page 2
Analysis
The responses were received from the following firms:
Capital Market Consultants, Inc. Public Financial Management, Inc.
First Equity Corp. of Florida Ralph Anderson & Associates (no bid)
Florida Municipal Management, Inc. Raymond James & Assoc., Inc.
Howard Gary & Company Southeastern Investment Securities (no bid)
Morgan Stanley & Co., Inc. (no bid)
The City Manager appointed the following selection committee:
Denise Bymun, Chief Accountant
Perry Fabian, Chairman of the Budget Advisory Committee
Peter F. Liu, Director of OMB
Robert J. Nachlinger, Finance Director
Robert Reboso, Asst. to the City Manager
Judith Ford, Asst. Purchasing Agent, non-voting Chairman
The Selection Committee meet on July 10, 1992, to review the proposals for responsiveness
and to assign weights to the evaluation criteria. In its review, the Committee determined
that the responses from three of the firms were non-responsive and did not meet the
specifications outlined in the RFP. The three firms were Capital Market Consultants, Inc.,
First Equity Corp. of Florida and Florida Municipal Advisors, Inc. These responses were
not scored.
On July 13, 1992, the Selection Committee scored the remaining three firms as follows:
1. Raymond James & Associates, Inc. 4545
2. Public Financial Management, Inc. 4040
3. Howard Gary & Company 3320
Conclusion
As a result of the evaluation process mentioned above, Raymond James & Associates, Inc.
is the top ranked firm and appears to best meet the City's needs for a Financial Advisor
in the refunding of the general obligation bonds of the City.
115
ORIGINAL
RESOLUTION NO.92-20561
Authorizing the employment of Raymond
James and Associates, Inc. as financial
advisor to the City on a bond refunding
transaction covering the #25, 115,000
general obligation refunding bonds,
series 1986, the $37,395,000 general
obligation refunding bonds, series 1987
and the $3,000,000 genreal obligation
bonds, series 1987.
ordessimmomm
1 i